Retail Supply Chain Analysis: Aldi and Marks and Spencer

This report provides a comprehensive analysis of retail supply chain operations, specifically examining how supermarket retailers, such as Marks and Spencer (M&S) and Aldi, meet the needs of the market. It explores the importance of market research in identifying consumer preferences and the role of assortment planning in optimizing product selection and space utilization. The report highlights the significance of own brands and effective supply chain management in contributing to the success of these retailers. Key aspects discussed include inventory management, customer service, and the adoption of digital platforms. By comparing and contrasting the strategies of M&S and Aldi, the report illustrates how these retailers leverage various approaches, including packaging, home delivery, and festive discounts, to attract and retain customers, ultimately achieving a competitive edge in the retail sector. The report emphasizes the need for retailers to adapt to changing consumer behaviors and leverage supply chain management for timely deliveries and cost efficiency.

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Retail Purchasing and Supply
Management

Critically discuss how supermarket retailers meet the needs of the market. Evaluate
features of their assortment planning, own brand and supply chain operations that
contribute to their success.
Each and every retail businesses are focusing upon identifying the needs of target
market and thus promote its brand in terms of carrying out effective supply chain operations
which helps in contributing towards their success. Marks and Spencer is one of the main
British Multinational Company retailers and thus specializes in selling food products and
provides clothing, shoes and accessories as well (Alon, Jaffe and Vianelli, 2012). Company is
also listed upon London Stock Exchange and sells branded products to consumers. M&S is a
global brand and provide discounted products in order to meet the needs of consumers.
Market is the place where buying and selling of goods or services is being done and thus
helps in meeting the potential needs of clients. It also helps firm to enhance the sales and
profitability of firm in market. Further, it is an open place where organizations carry out
market research in order to identify the potential need of buyers and then fulfill their needs
and wants so that sales could be attained (Zimmermann, 2013).
Here, present essay discusses and compares about the two supermarket retailers i.e.
Marks and Spencer and Aldi that focuses upon providing products or services and meet their
needs. Cited retail supermarkets carry out market research so that products could be sold to
potential buyers and raise their satisfaction level. It also assesses that assortment planning is
required in regard to determine that what and how much business need to carry out within
each merchandise category (Van Weele, 2009). Thus, supermarket retailers focuses upon
preparing assortment planning and thus helps in selling trade off between the volume and
depth of goods so that retailer fulfills the available space within supermarket outlet. Marks
and Spencer possess different features of assortment planning, brand image and supply chain
operations in regard to contribute towards attaining success (Monczka and et.al., 2015).
Moreover, both the supermarket retailers M&S and Aldi execute assortment planning
and thus involve goods and services from different other brands and increases brand image of
business so that sells and profitability of firm could be increased. Therefore, it is significant
for supermarket brand to assess their needs and produce the goods in terms of satisfying their
targets (Lysons and Farrington, 2006). There are different types of market that provides
products to consumers such as online and physical and thus raises their performance in
market. Both M&S and Aldi focuses upon operating through online and physical store and
thus expand their operating in retail market. Cited supermarket retailers execute effective
market research and assess the needs of target market so that products or services could

enhance their sales and profitability in market. Market research is considered as one of the
effective tool that helps in choosing products or services as per the needs of potential
consumers and enhances sales and profitability in market (Benton Jr, 2010).
Here, assortment planning is the process which helps in selecting products or services
in proper manner so that sales and profitability could be maximized in specific time frame.
Also, it is essential for supermarket retailers to prepare an effective assortment plan and thus
evaluate the needs and wants of products or services so that sales could be enhanced
(Handfield and et.al., 2009). Top management of Aldi assess the needs of market and then
identify that Kellog’s is more preferred among consumers. Therefore, firm aims to keep such
product in supermarket and thus enhance the shopping experience of customers. Similarly,
M&S management identifies that consumers are preferring to have high quality food products
that assists them to improve shopping experience of clients (Burt, 2002).
Further, identifying the supply chain operations of supermarket retailers which helps
them to adopt effective ways in regard to reach potential consumers and enhance the sales
and profitability of firm in market. M&S and Alsi emphasizes upon influences customers
through the size of packaging the products and thus attract wide range of customers towards
firm (Chen, Lin and Huang, 2006). Also, packaging is considered as an effective approach
that helps in identifying the needs of customers and providing them quality goods so that
retailers could expand its operations in retail market. Thus, through comparing and
contrasting the operations of M&S and Aldi it focuses upon identifying the needs of target
market and thus obtain competitive edge in market. Aldi focuses upon medium class a
customer who aims to purchase reasonable price products and gain quality products (Stadtler,
2015). Further, customer service is another crucial aspect that helps in providing consumers
and effective quality products or services in regard to improve the business performance in
market. Both Aldi and M&S carries out effective customer service through providing them
timely products or services as well as providing them home delivery options. While, the
target market of M&S are high class customers and thus wishes to purchase quality products
in regard to improve the sales and profitability of firm in market (Krause, Vachon and
Klassen, 2009).
Moreover, M&S and Aldi possess effective retail strategy in regard to pay attention
towards workers promoting firm through websites, blogs and social media so that potential
customers could be satisfied. Both the supermarket retailers possess effective customer
segment and thus design products according to customer’s needs and thus improve the sales
in market (Chicksand and et. al., 2012). Now-a-days supermarket retailers focuses upon

digitalization and thus use social media platform i.e. Facebook, Yahoo and Twitter in regard
to influence large number of customers towards firm. Thus, they also focus upon adopting
online platform for selling its products or services to target customers. Similarly, firm also
sells their products through physical outlet and thus it helps in influencing the sales of firm
through attracting large number of customers in market (Li and et.al., 2006).
As far as retail sector is concerned its existence is totally on the buying pattern and
buying behavior of the customers. Thus in order to make a significant profit in this industry
businesses needs to take care of needs and wants of customers. As it is said that keeping your
customers happy will make you move forward in achieving your goals and objectives. Some
of the retail chains of UK like Aldi and Mark & Spencer's has been delivering quality of
services to its customers and buying environment and the services provided by them is so
attracting and amazing that people are loving to buy from these stores rather than the others
(Swami and Shah, 2013). In the recent times it has been noticed that in retail sector there is a
boom because of stores providing variety of services which in turn helps them to attract
customers to buy the products from their stores. Aldi and M & S has been delivering quality
services from many years and will continues to do so but one thing they both have common
that they are keeping a great look on is, what their customers are fond of and how they buy
and how frequently they buy and which product is been in the demand(Swami and Shah,
2013). This particular review of the customers over the years have given Aldi and Mark &
Spencer's both develop a great trait in managing the demands of the customers.
Aldi and Mark & Spencer's the two most attended and famous retail chains of UK
has been maintaining the products at the stores in an efficient manner in order to keep
attracting customers towards their stores which eventually will help in increasing the
profits(Qi, Ni and Shi, 2015). These two stores have been known for their Inventory
Management, as it has been seen that no customer in the past years have been gone empty
handed after entering these stores, somehow customers find their piece of product which can
satisfy him/her. Further if talked about the management of Aldi and M & S they have been
keeping a close look on every products so that they can know which product needs to be
ordered and what the shortages is of. Thus making these evaluation they have been able to
successfully implement the inventory management techniques in there retail outlets which in
turn has facilitated them to increase the customers as well as the positive brand image in the
minds of customers have been developed. Also Aldi and Mark & Spencer's have been making
engaged in giving festive discounts on various products which can be buy by the customers at
the time of festivals like Christmas, Easter, valentine's day, etc(Ahi and Searcy, 2015). This

type of strategies have made them to engage more and more customers right from the age of
10 to the age of 80. These stores have been selling the products of all the needs which in turn
can create value of their customers in the long run as well as in the short run.
Aldi and Mark & Spencer's have been providing the services of distributing the
products at homes also in the term head of Home Delivery. One of them started the home
delivery system which has become so successful for the one retail store that the other one can
resist the advantage of the earlier one so he also started to deliver the products at
home(Mateen and Chatterjee, 2015). If talked about the retail sector as a whole it has been
seen that distribution systems that prevail in this industry includes three forms distribution
channels which are: Manufacturer-Retailer-Consumer, Manufacturer-Wholesaler-Retailer-
Consumer, Manufacturer-Wholesaler-Jobber-Retailer-Consumer. Thus these retail chains
have been engaged in first type of distribution system which is Manufacturer-Retailer-
Consumer. Through this set of system they bought goods directly from manufactures then
they deliver it to the customers. They are acting as the mediator between the end consumer
and manufacturer. For maintaining the distribution systems manger needs to ensure that
Selling effort should be increased, managerial efficiency is achieved, building the member
loyalty is the key, Identifying the buyer level and ensuring the availability of the resources or
products is important(M. Tachizawa and Yew Wong, 2014). As retailing is been defined as
selling the products and services to consumers for their personal and family use thus this
makes them work efficient and effectively.
As Retail chains have been engaged in management of different things like customer
preferences, distribution system, meeting of demand and many others. One such element or
part of activities that is undertaken by these two retail chains as well as other retail chains
across UK is Supply Chain Management which is an important concept related to making
available the product at the right place and right time(Hornibrook, May and Fearne, 2015).
Aldi and Mark & Spencer's has been using the supply chain effectively over the years as they
have implemented the change in the form of Home delivery which has benefited them to
make the deals with several other manufactures who can deliver the products at more fast
pace and quick time because as the customers will rise the demand for the products will also
and meeting those demands these retail chains have to make deals with different
manufacturers so that if one manufacturer is not able to deliver the product due to any means
then other will. Thus the retail chains have been successful in grabbing those deals which has
impacted their business in a positive way. Since thought the use of supply chain Aldi and
Mark & Spencer's are delivering the quality of services, also product quality is controlled,

through the supply chain inventory levels are maintained, timely deliveries are received and
done and expense management is achieved(Hornibrook, May and Fearne, 2015). Supply
chain management is a broad subject matter which is concerned with farming, designing,
manufacturing, packaging and transportation of goods and services which in turn creates
value for the firm which makes the goodwill of the retail chains grow up to an extent.

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