Critically Discussing Supermarket Retailers Meeting Market Needs

This essay critically examines how supermarket retailers effectively meet the needs of the market, using Marks & Spencer and Aldi as comparative case studies. The analysis delves into the critical aspects of assortment planning, evaluating how retailers determine the range and depth of products to maximize sales and profitability. It explores the significance of own brand strategies in building customer loyalty and differentiating offerings, while also assessing the efficiency and impact of supply chain operations on product availability, cost management, and responsiveness to market demands. The essay highlights the importance of market research in understanding consumer preferences, adapting to both online and physical retail environments, and implementing effective marketing strategies to enhance customer satisfaction and gain a competitive edge. Ultimately, the study underscores the integrated nature of these elements in driving the success of supermarket retailers in a dynamic marketplace.

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.
Marks & Spencer is considered as the major British multinational company (MNC)
retailer and thus specializes in selling food products and also provides, clothing, shoes and
other accessories, home and luxury products to consumers. It is also listed on the London
Stock Exchange and thus sells branded goods to consumers while, Aldi is considered as the
global brand for discount supermarket chains with over 10,000 stores in 18 countries. M&S
have total 852 stores throughout UK while, there are various international stores in India,
Spain, Ireland, Greece, Russia and Finland.
Market is considered as the place where buying and selling of products or services is
being done. It is an ‘open’ place where businesses meet the potential customers and identify
their needs and wants so that sales and profit margin could be raised.
In the present study, it will discuss and compare the two supermarket retailers Marks
and Spencer and Aldi on how well they meet the needs of the market (Alon, Jaffe and
Vianelli, 2012). Firms carry out market research in order to assess the wants of customers and
then aim to provide the goods accordingly so that satisfaction can be attained. This essay
also identifies that assortment planning is considered as the process of determining that what
and how much firm needs to carry within each merchandise category. However, preparing an
assortment plan assists in setting trade-off between the volume and depth of products that a
retailer aims to carry within the available space. Thus, it possesses varied features of
assortment planning, brand image and supply chain operations in order to contribute to firm’s
success (Amatulli and Guido, 2012). For instance, M&S and Aldi carryi out assortment
planning so that they can involve products or services from different other brands as well and
thus raises the brand image of firm in market by selling various brands to consumers. It is
essential for a supermarket to understand the market needs and then produce the products
accordingly. However, management needs to analyze the market conditions goods could be
delivered in the right quantity, correct quality and in timely fashion.
It can be stated that there are different types of market which are present such as
online and physical that helps businesses to sell their merchandise. M&S and Aldi aim to
operate in both online and physical market in order to sell products and expand their services
so that sales and profit margin could be attained. For instance, both M&S and Aldi aims to
carry out effective market research in order to identify the needs of market and then provide
them particular goods or services so that sales margin could be increased (Ashworth, 2012). It

can be done through carrying out market survey and selecting a group of respondents from
population and obtaining their responses regarding their needs of particular merchandise,
which supermarket retailers they choose and many more. It helps supermarket retailers Marks
and Spencer and Aldi to identify the needs and wants of buyers and provides them products at
competitive prices. Thus, it raises customer base and enhance sales of firm in market (Gilbert,
2003).
Assortment planning is considered as the process whereby products are selected and
planned in an appropriate manner in regard to maximize sales and profit for particular time
frame. It is essential for companies to carry out effective assortment plan in regard to identify
the products which is aimed by business to sell. For example, Aldi management identify the
needs of its customers and then provides Kellogs products in their stores as it is highly
preferred by consumers. Company aims to keep its prices low in order to attain high sales.
However, it can be stated that supermarkets play a significant role in grocery and fashion
shopping as almost all the shoppers tend to buy products from supermarkets (Hernon and
Altman, 2010). . Such convenience stores identify the attitude and preferences of buyers and
provide them high quality products which are not sold by other similar retailers (Glanz, Bader
and Iyer, 2012). It can be evaluated that through carrying out study it helps in identifying the
needs of buyers with the help of carrying out proper research and thus purchase the products
or services so that sales and profitability of firm could be attained. (Hollensen, 2015).
Supply chain of company is diverse in nature and thus they need to adopt effective
ways so that they can reach customers effectively. Supermarkets are also focusing upon
influencing the size of packing as it helps them to attract wide range of clients. Packaging
needs to be done in an effective way as it is the most influential factor in terms of improving
business success. Further, it can be assessed that supermarket adopts effective tactics and
action plans in order to identify the needs and attitude of customers wants to purchase
products. Through comparing and contrasting, it could be identified that M&S and Aldi aims
to identify the needs and expectation of its target consumers so that it helps them to gain
competitive edge over rivals (Kinnucan and Zhang, 2015). The target market of Aldi are
medium class buyers for whom low price products are being delivered. While M&S provides
high price and quality products to its consumers in terms of enhancing the sales of firm.
Through adopting effective retail strategy such as paying attending towards employees,
promoting company through websites, blog and social media etc. it would help Marks and
Spencer and Aldi to identify its specific customer segment and thus design the product or
service accordingly in order to maintain the market share similarly over a long time period. In

contrast to this, Aldi tries to maintain its cost low so that prices can be kept minimum in
terms of attracting large number of customers towards firm. Business also evaluates the
loyalty of customers with the particular brand and then introduces different schemes and
offers that also decide the way how supermarket meet the needs of market. In order to meet
the needs of large market size, supermarket retailers decide to expand its operations through
entering into online business (Kotler and et, al., 2010). Thus, it is one of the major expansions
as currently people are moving towards digitalization i.e. using social media platforms such
as Facebook, YouTube and Google etc. and therefore, they identify the needs of market and
then provide them specific product or service through online channels so that sales and profit
margin could be raised. However, according to the convenience of consumers, business
operates both online as well as physical stores so that sales could be increased. Thus, in order
to attain success it is essential for supermarket to identify the needs of market and then
provide them particular products or services so that success can be attained (Terpstra, Foley
and Sarathy, 2012).
Assortment planning, own brand and supply chain operation helps in contributing to
the success of supermarket as it helps in influencing large number of customers towards the
firm. Also, providing appropriate range of products or services to clients it helps in satisfying
their needs and making them loyal (Varley, 2014). Company identifies the need of market
through carrying out analysis so that needs and wants of customer could be identified which
helps them to improve the sales of firm (Wali, Wright and Reynolds, 2014).
Assortment planning is the process which determines the number of product being
placed in merchandise category, group or department in relation to retailers so that best
results can be attained. All such decisions help in influencing buyers to purchase products or
service and raise the profit margin of firm. Marks and Spencer and Aldi aim to carry prepare
assortment plan related to shelf space, price of product, vendor classification, sub dividing
into sections etc. (Hernon and Altman, 2010). It means that carrying out appropriate planning
related to managing shelf space so that more preferred products by consumers could be
placed on priority so that sales could be enhanced effectively. All such planning helps
consumers to make purchase decision and therefore, it enhance the sales and profit margin.
Both the businesses also aim to develop appropriate assortment planning in order to select
product and plan so that sales and profit could be maximize. It also considers the financial
objectives and seasonality of products so that overall success can be attained.
Company needs to undertake effective decisions such as purchasing decision,
distribution systems, inventory management and customer service etc. helps in identifying the

needs of consumers and thus providing them the best quality goods so that success could be
attained. With the help of this, firm aims to obtain the best position in the market and thus
attain success (Scheer and Nüttgens, 2000). However, Marks and Spencer and Aldi aims to
obtain effective output of assortment planning that involves initial purchase quantities and the
receipt of flow across time so that best allocation of resources could be done (Hernon and
Whitman, 2001). It also depends upon identifying the product category and maintaining the
stock of the same as per the needs of customers in order to attain success. Main purpose of
M&S and Aldi to carry out assortment planning is to identify the objective of developing
product mix so that main goal of determining inventory level could be maintained. Further, it
is essential for M&S and Aldi to carry out effective brand image and supply chain operations
in relation to improve business performance. Therefore, it is essential for firm to prepare
appropriate planning and improve supply chain operations in market so that overall success
can be attained (Räisänen, 2003). Main feature of assortment planning is that it simplifies the
buying activities and manages the sells s that better results can be attained. Assortment plan
also involves list of product types stocked at any one time such as price level, styling, color,
packaging etc. It is also essential for M&S and Aldi to plan its store size, shelf and stairs so
that appropriate place could be provided to place the product and thus raise the performance
of firm in market (Alon, Jaffe and Vianelli, 2012). Company needs to improve its distribution
system and inventory management so that products could be delivered to end users.
Distribution system needs to be strong so that they can reach each and every party and
enhance their sales in market. While, inventory management also aims to maintain the stock
of products which are prefered by consumers and thus fulfills the needs of consumers by
providing them appropriate products or services.
It can be evaluated that assortment planning, own brand and supply chain operations
helps in contributing to their success.. All such factors are significant and helps retail
supermarket to attain desired success (Burt, 2002). Marketing team of firm needs to assess
the buying decision of firm and then prepare the product accordingly which helps them to
satisfy their needs and attain high profit margin (Amatulli and Guido, 2012). All these factors
helps retail supermarket to identify the purchase decision making of customers so that
appropriate quality merchandise could be delivered to them in order to satisfy their needs.
Also, it is essential for firm to improve its customer service and thus render best quality
goods to sustain them within firm for long term. Through market research it helps in
evaluating the needs of the market and produces similar retail products that is different from
competitors and thus contribute to their success.

It can be concluded from the study that supermarket retailers are required to identify
the needs of target market and then prepare the products and services so that best results can
be attained. However, it is essential for firm to improve marketing and promotion activities
and carry out effective customer service to attain overall success. Also, assortment planning
is one of the crucial decision that needs to be taken by the management of Marks and Spencer
and Aldi in regard to plan the product, price, and space for the merchandise so that sales and
profit margin could be raised. Further, carrying out effective market research and assessing
the needs and wants of customers helps in influencing them to purchase the goods and
expand the business operations in market. Also enhancing the brand image and supply chain
operations assists in influencing business functions so that performance of firm could be
improved in market. Hence, retailers carry out effective market tactics and strategies so that
they can meet the needs of target market and contribute to their success.
Management of Aldi and M&S need to undertake effective decisions in relation to
supply chain distribution so that products or services could be delivered to consumers. Also,
Aldi as compared to M&S focuses upon keeping its prices low so that consumers could be
attracted towards firm. Further, there is differentiation in the products of Aldi and M&S so
that targets customers could be attracted. Aldi keep its prices low due to incurring low cost on
production. Thus, it attracts target consumers who wish to purchase low price products.
While, M&S provides high price products to its customers who are high class. They both
adopt different supply chain distribution system in relation to reach consumers.

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