FY028 Inquiry Project: Analyzing the Retail Industry for Aldi

This report delves into the dynamic retail industry, examining current trends such as digital technology integration, product customization, and same-day delivery. It then conducts a thorough analysis of Aldi, a prominent discount supermarket chain, evaluating its strengths, weaknesses, opportunities, and threats (SWOT). The analysis incorporates primary data collected through questionnaires to assess Aldi's performance against industry trends. Furthermore, the report proposes strategic recommendations, including staff training and the implementation of an action plan centered around the STP (Segmentation, Targeting, Positioning) approach, to enhance Aldi's market share and adapt to the evolving retail landscape. The conclusion emphasizes the importance of aligning with industry trends, leveraging digital media, and utilizing tools like SWOT and STP to achieve sustainable growth and success in the competitive retail sector.

Retail Industry for
Aldi

Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Retail trends...........................................................................................................................3
Analysis of your organisation................................................................................................4
Recommendations..................................................................................................................6
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................9
Books and journals.................................................................................................................9
APPENDIX..............................................................................................................................10

INTRODUCTION
In the present competitive era, retail sector is one of the fastest growing industry
which have their direct influences on the behaviour of people. The present report is based on
a retail organization named as ALDI. The company is a well known supermarket chain
founded by Karl and Theo Albrecht. ALDI mainly deals in high quality groceries and
household essentials across the world. The present report includes different sort of trends
within retail sector. In addition to this, it also includes an examination about how a business
entity trends in the industry and recommendations are also going to be provided to the
management team for increasing the market share.
MAIN BODY
Retail trends
Retail sector is one of the most dynamic sector where technologies changes on a
regular basis which affects the overall performance of the company (Dholakia, Dholakia and
Chattopadhyay, 2018). In order to remain at competition it is very essential for the
management team of an organization to follow the trends so they gain advantages at the
marketplace. Some common trends which have been identified are as follows:
Bringing new and innovative digital technology: It is one of the main role within
retail sector which contributes to the development of the industry. Innovation in digital
technology assist in serving customers by adopting highly innovative technologies. In
reference to ALDI, by adopting new digital technology company will be able to provide high
quality service to their customers at the competitive marketplace.
Product customisation: Another most essential trend within the retail sector is that
people prefer customisation in their products. There is an option available on companies
website where they provide customised services to their customers which assist them in order
to bring sustainability at the competitive marketplace. As a result it has direct impact on the
profitability of the company at marketplace. In the present context of ALDI, company also
provide customized products to their customers in order to be in trend.
Same day delivery: There is another retail trend where organization provide both
online and offline services to their customers (Gielens and Gijsbrechts, 2018). In addition to
this, there is one day delivery facilities to their local customers which attract large number of
customers towards them. In addition to this, it has also been identified that there are some

organisations within retail sector who provide extra benefits to their prime or regular
customers. This is one of the trend which have their huge impact on the overall business
operations of an organization.
Digital platforms: In retail sector, digital platforms have their huge impact on the
overall performance. Organisation adopt different social media platforms in order to attract
people towards them such as Google, Facebook, Instagram, You Tube and Twitter. Higher
authority of the business entity adopt different online platform in order to promote their
products and services which as a result grab attention of large number of individuals across
the world (Gill, 2018). In addition to this, it has also been identified that around 45% of
commercial entity are now using various online platform in order to influence the behaviour
of people which leads towards enhancing the sales of the company.
Analysis of your organisation
Aldi is a discount supermarket chain that was established in the year 1946 and its
head office is located at Mulheim, Germany. The company offer high quality grocery and
household essentials, which is one of the reason of its success. In addition to this, Aldi has a
high market presence as it offer product in more than 20 countries and has around 10,000
stores globally.
There are mainly two types of method that is used to gather data about Aldi and
is given below:
Primary data: It is defined as first had information which is collected by using
various sources such as questionnaire, interviews, survey and so on (Lee and Chow, 2020). In
the present report, questionnaire is adopted that involves a set of question and asked by 40
respondents in a company.
Q1) Do you have an understanding about current trends prevailing in retail industry?
a) yes
b) no
Q 2) According to you, is Aldi perform as per the current trends of retail industry?
a) Yes
b) No
Q3) what are the methods adopted by Aldi in order to identify retail trends existing in
market?

a) Market research
b) Journal overview
c) None of these
Data analysis & Interpretation:
Q1) Do you have an understanding about current trends prevailing in
retail industry?
Frequency
a) yes 30
b) no 10
a) yes b) no
0
5
10
15
20
25
30
35
30
10
Interpretation: From the above graph, it is interpreted that from total 40 respondents,
30 participants have knowledge about recent trends in the retail industry. In addition to this,
the remaining 10 participants have no idea about current trends in retail industry. It is
important for an organisation to provide training to employees in order to provide them
knowledge about recent trends in retail industry.
Q 2) According to you, is Aldi perform as per the current trends of
retail industry?
Frequency
a) Yes 35
b) No 5

a) Yes b) No
0
5
10
15
20
25
30
35
40
35
5
Interpretation: By analysing above graph, it is stated that Aldi is performing its
functions and activities according to the current trends prevailing in the industry and is
perceived by the 35 participants. In addition to this, 5 respondents out of total 40 participants
is not agree with the point.
Q3) what are the methods can be adopted by Aldi in order to identify
retail trends existing in market?
Frequency
A) Market research 30
B) Journal overview 5
C) Observation 5
A) Market research B) Journal overview C) Observation
0
5
10
15
20
25
30
35
30
5 5

Interpretation: The given graph determine that there are various methods that can be
adopted by higher authorities of Aldi for identifying current retail trends. From the total 40
participants, 30 respondents said that market research is the appropriate method to gain
knowledge about recent retail trends. The 5 participants perceive that Journal overview is
suitable whereas the remaining 5 respondents said that observation method is an appropriate
method which can be used by Aldi for analysing current retail trends in an effective manner.
SWOT analysis of Aldi
It is considered as a tool that help an entity to identify its strength as well as
weaknesses which in turn assist in making improvements in an effective manner (Lee, 2019).
The higher authorities of Aldi make use of SWOT framework that for identifying its current
performance level. It is given below:
Strength Weaknesses
 One of the major strength of company
is its market presence as it offer
product in more than 20 countries and
has around 10,000 shops globally.
 The company offer high discounts
which help company to attract large
number of people and increase its sales
and profits as well.
 It is analysed that Aldi has poor
inventory management practices that
result into non-fulfilment of demand in
market.
 The company has high employment
turnover rate due to which there is
decline in productivity level of Aldi.
Opportunities Threats
 Aldi has the opportunity to expand its
market into other countries that will
help in earning higher profits.
 Adoption of new technologies will
assist respective company to provide
on-time and quality service to
customers.
 One of the major threat of company is
its competitors that directly imact
negatively on its performance level.
These are ASDA, Lidl and many more.
 Increase in the inflation rate of raise
the cost of production and has impact
on profitability of Aldi in a negative
manner.

Recommendations
By analysing the above discussion, some of the recommendations are developed for
company that is given below:
 It is suggested to the managers of Aldi to provide training session to all the staff
members so that they have knowledge about the trends prevailing in the retail industry
in an appropriate manner (Sezen and Çankaya, 2018). It help company to easily adopt it
and improve the performance level in an effective manner.
 In in order to improve performance, the company is required to develop an action plan
as it help in using effective strategy and in dealing with market retail trends in an
appropriate manner. The action plan for respective company is given below:
Action plan
In order to enhance the market share in an appropriate manner, it is important for an
organisation to make use of effective marketing strategy. It is analysed that higher authorities
of Aldi make use of STP strategy that involve three elements and is define below:
STP approach: It is consider as an approach that is adopt by company to segment the
whole market, to target the right market and to build a positive mind set of customers towards
the brand. It is significant for the higher authorities of Aldi to make use focus on its strength
as it help organisation to attain competitive advantage at marketplace. It is determine that
STP approach will assist company in using recent trends of industry and to raise market share
of organisation. The STP analysis of Aldi is given below:
Segmenting: In this, the company divide the whole market into different segments on
the basis of demographics, geographic, psychographic, behavioural and so on. In relation to
Aldi, it is segmented its market on the basis demographics that involve age, gender, class,
style, social status and so on. It help company to easily determine its market and improve its
performance level in an effective manner.
Targeting: It take place after the segmentation and herein the company target market
in order to covert its potential customer into the actual one. in addition to this, the companies
provide offers to this people in order to attract them and increase its sales ad profitability
level. With reference to Aldi, it is determine that company target people who belong from
middle class and is consider people of all age as they all are required groceries and essential
items for their survival.

Positioning: This is the last step of STP approach and herein, the company is trying to
develop positive mind set of people towards the brand. It is important for an organisation to
build a unique image in mind of customers so that they can remain loyal for longer time
period. In context to Aldi, it is analysed that it make use of effective promotional tools such
as social media applications in order to provide information to large number of people
(Souiden, Ladhari and Chiadmi, 2019). In addition to this, it also take feedback from
customers after the purchasing in order to make improvements. It also assist company to
make customer feel valued and respected that has positive impact on brand image of
company.
It is analysed from the above discussion that action plan will assist company to
increase its market share and deal with the changes take place in the retail industry. In
addition to this, it also help company to manage its resources in an appropriate manner that
has positive impact on performance and profitability of company.
CONCLUSION
From the above discussion, it has been analysed that it is important for an
organisation to perform according to the recent trends in order to gain success and higher
growth in market. in addition to this, using of digital media for promoting brand assist an
entity to enhance its customer base level and sales as well. SWOT analysis is consider as a
framework that assist an entity to identify its strength and weakness in an appropriate
manner. STP tool is used by organisations in order to target right customers and develop a
positive image in mind of customers.

REFERENCES
Books and journals
Dholakia, R. R., Dholakia, N. and Chattopadhyay, A., 2018. Indigenous marketing practices
and theories in emerging economies: Consumer behavior and retail transformations
in India. Journal of Business Research, 86, pp.406-415.
Gielens, K. and Gijsbrechts, E. eds., 2018. Handbook of research on retailing. Edward Elgar
Publishing.
Gill, M., 2018. The challenges to preventing losses in retailing: Views from retail loss
prevention managers and directors. In Retail Crime (pp. 357-378). Palgrave
Macmillan, Cham.
Hjort, K., Hellström, D., Karlsson, S. and Oghazi, P., 2019. Typology of practices for
managing consumer returns in internet retailing. International Journal of Physical
Distribution & Logistics Management.
Lee, S. H. and Chow, P. S., 2020. Investigating consumer attitudes and intentions toward
online fashion renting retailing. Journal of Retailing and Consumer Services, 52,
p.101892.
Lee, Z.W., and et. al., 2019. Customer engagement through omnichannel retailing: The
effects of channel integration quality. Industrial Marketing Management, 77, pp.90-
101.
Sezen, B. and Çankaya, S. Y., 2018. Green supply chain management theory and practices.
In Operations and Service Management: Concepts, Methodologies, Tools, and
Applications (pp. 118-141). IGI Global.
Souiden, N., Ladhari, R. and Chiadmi, N.E., 2019. New trends in retailing and services.
Thomas, T.C., Epp, A. M. and Price, L. L., 2020. Journeying Together: Aligning Retailer and
Service Provider Roles with Collective Consumer Practices. Journal of
Retailing, 96(1), pp.9-24.
Yawar, S. A. and Kauppi, K., 2018. Understanding the adoption of socially responsible
supplier development practices using institutional theory: Dairy supply chains in
India. Journal of Purchasing and Supply Management, 24(2), pp.164-176.

APPENDIX
Student name Xyz
Company
name
Aldi
Rationale of
project
In references to current project it is regards that
 Identify current trends in retail industry is the main objective of
project
 Analysing the various situations that are faced by company while
trading in retail industry.
Aim of
project
 The aim of the project is to identify current trends within the retail
industry in context to Aldi.
Objectives of
project
 Objective of this project is to determine different trends in retail
industry that help company in achieving the goals and objectives
and also for effective planning.
 Identifying the strengths, weaknesses opportunities as well as
threats of Aldi.
 To analyse the behaviour of individual towards changes take place
in retail industry