Marketing Report: PESTLE, SWOT Analysis and Recommendations for ALDI

This report provides a comprehensive marketing analysis of ALDI, a prominent player in the retail industry. It begins with an introduction to the core principles of marketing, focusing on the 4 Ps (Product, Price, Place, and Promotion) and their significance in crafting an effective marketing strategy. The report then delves into a PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors influencing ALDI's operations and profitability. Following this, a SWOT analysis is presented, outlining the company's strengths (e.g., low cost, convenience), weaknesses (e.g., limited online presence, product range), opportunities (e.g., premium product offerings), and threats (e.g., legal issues, competition). The report concludes with recommendations, including suggestions for online expansion, product portfolio diversification, improved employee satisfaction, and investment in research and development. It also suggests leveraging technology like AI for improved customer experience and inventory management. The report is well-referenced, providing a solid foundation for the analysis.

PRINCIPLES OF
MARKETING

Table of Contents
 INTRODUCTION 3
 Pestle analysis of ALDI 3
 SWOT Analysis 7
 Strength- 7
 CONCLUSION 9
 RECOMMENDATION 10
 REFERENCES 11

INTRODUCTION AND BACKGROUND
 The basic principles of marketing consist of product, price, place and promotion.
Together, these four principles are known as the 4 P for its marketing, and include the
integration of marketing.
 For a marketing strategy to be effective, the four components must be used correctly.
This ppt covers pestle analysis and SWOT analysis of the company and the
recommendations in relation with the threats and opportunities in the SWOT analysis.
The brand is common and owned by two families whose nationalities is German and
who is discounted supermarket chains.
 The company is a private company and the industry in which they operate in is retail
industry. They have more than 10,000 stores in 20 countries and the turnover of the
company is around € 50 billion.

Pestle analysis of ALDI
 Political Factors-
 These factors affect the probability of survival of the company and impact on the profitability of the
company. This is because these types of factors are uncertain and there are changes in the current
political regimes in the decisions taken by the government. Sometimes these factors not only affect
the business of host country but also affect the business of other countries in which the country is
maintaining their operations. Company needs to consider these factors before they invest into other
markets.
 The stability of political factors in the concerned country over a period of time
 Economic Factors-
 These factors are concerned with the level of inflation, condition of the economy and rate of
interests. These factors are concerned with the aggregate demand and aggregate investment. These
factors can either make a company profitable or make them incur a huge loss. Before investing
company must look for these areas.
 The system and process of the economy and it is required to be assessed that monopoly, oligopoly is
similar to a perfect system of economic competition.
 Growth of GDP rate will help the company to analyze how fast will the company grow in the future.

CONT..
 Social factor
 These factors are concerned with the beliefs, culture, attitude and values of the society. The factors
which the company needs to keep in mind are-
 ALDI targets their products on the basis of age and gender. For instance products which comes
under the category of make up are targeted to only women as it is unnecessary for men.
 It is necessary for the company to divide or segment the marketing so that they can promote the
products to those people who can afford premium products.
 Technological Factors-
 These factors helps the company to redesign the product or bring innovation into the market.
 These factors have helped the company to develop their aspects which has helped them to fight the
competition. If any type of new technology is introduced by the company they need to check and
monitor that how much recognition the advanced level of technology has gained in the market.
Other than that they need to analyse that how far they are as compared to their competitors in terms
of revenues. This will help them to assess the value of the technology and urgency of requirement
in the market.

CONT..
 Environmental Factors-
 These factors are concerned with the condition of the environment so that factors such as pollution,
global warming and other factors which are harming the environment can be reduced.
 The current situation of the environment states that ALDI needs to manage the transportation of
both their aspects such as finished product and raw materials. This will create difficulties for the
company to manage the delivery of the product before deadline.
 Legal Factors-
 These factors are concerned with the rules and regulation and the framework of the country. ALDI
do not have that type of policies which can help the employees regarding protection. Company
needs to consider these aspects-
 Laws related to intellectual property and for the protection of the data are needed to be implement
so that they can protect the patents and ideas of the company because of which they will be able to
earn the profits. If the data of the company is not protected then it is sure that they will loose their
position and the competitive advantage.

SWOT Analysis
 Strength-
 The low cost of the supermarket is their greatest strength. Many consumers are
switching to their brand from Sainsbury and other competitors due to their low pricing
strategy. The reason behind this is that many of the people are preferring cheaper rate
of products. Cutting of price by Aldi has changed the competition in the sector of food
retailing since the last decade which has benefited them and reduced the power of their
rivals in the market.
 Another strength of the company is that it offers convenience to people. Other than the
fact that they offer low prices they also have stores in almost every corner which helps
them to get more footfall by attracting them. They have around 700 stores in the
country and they are looking to expand more of their operations. Not many of their
rivals has the strength to look after expansion at this stage and this level.

CONT..
 Weakness-
 Company has a weakness and that is to not have their operations online which is considered as one
of the biggest weakness of the company in the digital area. This factor is affecting the sales of the
company and limiting their share to grow into the market as all pf their competitors such as Tesco
and Sainsbury offers online services to their consumers.
 The range of products and its assortment offered by the company is limited. In fact it is so limited
that many of the buyers cannot complete their shopping specially when people are looking for
basic food products at heavy discounts. This pushes the buyer to one of their competitors who has
it all such as more variety and different range of products.

CONT..
 OPPORTUNITY
 It has been come into notice that needs of the consumers are growing with time and with that they
are ready to spend more. They are ready to pay high amount for their products which opens the
opportunity for discounted stores such as Aldi to charge high prices for their products and offer
better quality goods to them. Apart from this company also has the opportunity to add more range
of products to their portfolio.
 Threats-
 The issues which the company is facing on the legal aspects are leading to negative publicity in the
market. This is also affecting the conditions of employment which are poor working.
 Aldi faces a lot of competition from biggest key players in the market such as Walmart and
Amazon as either they are the best buy option or they are entering into online retail of grocery
which is causing a threat to them.

CONCLUSION
 From the above ppt it has been concluded that company has many opportunities such as taking
their operations to online market and add more categories of product to their portfolio so that they
can satisfy their consumers.
 Other than this they need to improve the satisfaction level of employees and improve the working
condition and offer them pay according to the level of work they are completing. This will help the
company to reduce any lawsuit regarding discrimination and violation of healthy and safety law.
Aldi is facing negative publicity in the market due to many factors such as quality of their products
which they need to change so that they can meet up to the standards of people.
 It has been analyzed that if the company is able to retain the level of profits then they need to
reinvest them in the area of research and development so that they can work up to they can bring
future innovation into the market and gain the benefit of competitive advantage. They also have
the scope to offer healthy and organic products into the market as more and more consumers are
shifting to healthy products. The reason behind that is people are more concerned nowadays for
health and company has the scope to launch a new product and target them.

RECOMMEDATION
 There are different ways can be used by the organization to improve their performance in the target
market. ALDI Supermarket is a retail store so this is important for them to provide better purchase
experience to the customers. Different processes and technologies can be used by the organization to
improve their operations in order to provide effective and satisfactory facilities to customers.
 There are different technologies can be used in the organization operations to reduce the complexity of
the purchasing process and billing process in retail store of ALDI supermarket. Technology like
Artificial Intelligence can be used in the organization to reduce the complexity of the sales and billing
operations to save time of customers. This technology also can be used to provide customisation in the
purchasing. This will also improve the data and information management of the organization which
will prevent any kind of data loss and management issue with in retail store.
 The inventory of the company also can be improved by implementing automation tools with in the
company to effectively manage the inventory of the retail store. The main challenges that are faced by
the organization is related to the low marginal profit of organization. This issue can be resolved the
operational cost of the company. Automation and Artificial Intelligence technology that can be used by
the organization to provide better and cost effective solution to the company. This process also can
reduce various risk with predictive feature of artificial intelligence.

REFERENCES
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Psychology Press.

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