Comparative Analysis: Waitrose and Aldi Retail Marketing Strategies

This report provides a comparative analysis of the retail marketing strategies employed by Waitrose and Aldi, two prominent UK supermarkets. It begins by defining and exploring the value propositions offered by each retailer, examining how they cater to their target customers through unique approaches to product offerings, pricing, and brand positioning. The report then delves into the customer service approaches of both companies, discussing models like Servqual and training programs designed to enhance customer experience. Furthermore, it investigates the communication and relationship-building strategies utilized by Waitrose and Aldi, focusing on the use of websites and social media platforms to engage with customers, provide information, and manage customer support. The analysis highlights the key differences in their approaches, offering insights into how each company strives to achieve long-term success in the competitive retail market.

RETAIL MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................3
VALUE PROPOSITION OFFERED BY RETAILERS.................................................................3
CUSTOMER SERVICE APPROACH............................................................................................4
COMMUNICATION AND RELATIONSHIP...............................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Value proposition is defined as the acknowledgement and communication of values which are
delivered to customers and which encourages them to choose a particular brand only. Thus for
gaining competitive benefit it is very important that organizations must adopt strategies to
deliver maximum and unique value propositions so that they can survive for long term in the
market. This report will discuss the two of the most successful organizations of UK: Waitrose
and Aldi. It will provide a comparative evaluation of value offered by both the companies and
how they used to manage quality services and customers for sustaining long term success.
VALUE PROPOSITION OFFERED BY RETAILERS
In order to deliver a higher value proposition companies used to adopt strategies which can meet
the needs of their target customers. The unique value proposition of two retailers is as follows:
Waitrose: Waitrose target the customers from all age and income group who want to buy
groceries. The key value creation principle adopted by Waitrose is to build and promote its brand
as essential instead of as basic amenity. Thus several attempts are made by organisation to ensure
that with the creativity and new approaches its customers always found ease. For instance as
compare to Aldi the store layout and packaging of Waitrose product is quite creative and stylish
so that it can have a unique impression on its customers by making them feel experience of
premium brand. For its target audience Waitrose targets to establish the convenience of
supermarket and specialist shopping store which gives priority to freshness and quality (Zhang
and et.al., 2019). As compare to Aldi, Waitrose has less emphasis on adopting low pricing
strategy instead this retailer focus on sustaining reliability and good quality even if it means high
costs. Contrary to giving preference to routine low pricing Waitrose target customers are retained
by means value creation through affordable quality.
Thus company does not hesitate in asking for premium returns from its customers for making
Waitrose supermarkets better than other competitors. In addition to the quality another value
proposition gained by organisation is the wide range of product and services it provide to its
customers. As compare to the other retailers the organisation is highly innovative in its product
range and it offers vast range of products so that majority of people can found the product as per
their requirements. Unlike Aldi, Waitrose has complete range of weekly food. The balanced food
range provided with healthy and fresh options itself is unique proposition for the company.

Aldi: The organisation targets the middle income groups of both men and women. It offers key
value by providing low cost services and products along with high standards of quality. Aldi’s
value proposition is based with approach to target the customers who prefer grocery shopping
from utilitarian perspective means the one who demands for low price and quick shopping. For
improving the customer experience Aldo also used to adopt several strategies which add value in
its product and service delivery. For instance to value the employees the organisation utilises
shelf ready packaging so that stocking can be done conveniently. The checkout procedure and
shopping cart labour are unique to Aldi’s shopping way. Instead of operators Aldi allow its
customers to bag the groceries.
However Waitrose and other competitors of Aldi can consider this self service approach as poor
retailing means but the targeted audience of organisation is ready to trade off and negotiate this
with the low pricing services offered by company. Aldi regularly make attempts to reinforce low
cost perception so that they can also encourage consumers to contribute in the operation process.
The simpler operational model and least negotiation with suppliers are also considered as value
adding approach for the organisation (Mangano and Zenezini, 2019). It creates a positive relation
with customers and suppliers of the company. The low cost operational model of Aldi gives
priority to the low cost services and also focuses upon promotional activities which can attract
customers to the store. For instance attractive discount offers as well as schemes like special
buys and loyalty benefits are also helping organisation to create value for the company.
The value proposition created by both the retailers is unique in own way and attracts different
customers. It varies from customer to customer that which particular aspect is the preference of
targeted audience. For achieving success in the competitive market it is necessary for the
organisation to continuously add value to its product and services so that consumers can be
retained for long term.
CUSTOMER SERVICE APPROACH
Retailing industry is said to be one of the most prominent one and that is operating in almost all
parts globally. Retailing is one of the most part anticipated services that is to be provided to
customers such that their needs are met by different companies upon the way they approach. One
may not be able to avail the opportunities that are existing in the market dress without complete
knowledge regarding retailing (Lee and Lee, 2020). Retailing sector is composed of different
formulas and there are a number of companies that are operating in and around the world.

Retailing is said to be or havoc that is created on a huge basis such that the revenue that is
generated by this sector alone is crossing billions of dollars. There are different categories
through which the retailing sector is divided. Retailing sector is not just focused upon a particular
formula but there are a lot of services that are being offered to the customers. Customers in this
prospective regarded to be the major and a crucial component that is to be taken care about by
the organisations all around. When there is a proper customer base the organisation will move
ahead in terms of growth and will have a long term flexibility throughout. This indeed is a great
opportunity for every retailer to develop the base is based on all the customer services that are
present in the organisation (Xu and et.al, 2017, May). When coming to the companies that are
being opted in this regard which are Waitrose and Aldi, these companies are towards being one
of the best retailers in United Kingdom and are acquired with more number of employees. The
retailing services of different category of goods such that people will get to meet their needs
based on their prospect. The customer service agents in this companies are said to be
incorporated into few terms and policies that are required for the organisation to take care about
customers. The different models that are being used by the organisations in order to move ahead
with the customer service are as follows:
Servqual: in this particular entity it is said to be one of those prominent aspects that will contain
different dimensions of research and through this particular process the expectations that are in
regard to the customers as well as their perceptions are captured (Gnewuch and et.al, 2017,
December). This is an essential aspect in order to build the expectancy that is to be provided to
its customers by the agents of the organisation such that no need is without met. This model also
defines the amount of quality that is to be present in a particular service such that customers will
not get obsessed with the flaw that the organisation is moving in.
Training: providing customer service is not just a small task to accomplish. It is regarded to be
one of those typical aspects that every retailing industry will have to deal with. Customers are the
effects of the organisation and therefore approaching them requires a lot of preparation as well as
the policy that are to be incorporated depends directly upon the complete knowledge of an
employee with its customer. The organisations are engrossed in training its employees in such a
manner that they will inhibit the interaction processes that are necessary for them to understand
their customers in a better way such that they will get to know that aspects as well as their

choices. This can help them to understand which product is likely to be present on a heavy
quantity.
Collaborative model: collaborative model is most likely to be preferred in a retailing industry
where the different employees in organisation collaborate with each other in order to approach a
customer (Adam and et.al, 2020). This indeed is a necessary aspect because the duel approach
towards customer will help them to understand more prospective because the different
perceptions of the employees will help them to impose their query is in an abundance such that
every small factor of customers will be known.
COMMUNICATION AND RELATIONSHIP
Communication is the key prospect of a dealing with customers. Different choices are to be made
by the organisations in order to communicate with customers and therefore to win over their
support for the organisation is what it matters. In this present our technology is reaching great
heights and there are different opportunities that are with regard to technological
implementations and the new technologies into the organisation are leading to more amount of
communication that is generated between customer as well as the employee (Janahi and et.al,
2017). Relationship is the major target between this communication channels because a customer
need to understand the policies of organisation and that can only be done if there is a proper
medium of communication. In this prospect the company is Waitrose and Aldi are said to be
incorporated norms and policies with regard to the channel of communication. Their major
channels include those of websites as well as different social media channels that will bring
about the aspects of organisation. some of them are as follows:
Website: website is regarded to be the major source of communication between the organisation
as well as the customers. A website is a necessary aspect for every organisation where every
small information regarding the products that are being dealt by the retailing industry will be
known to its customers. It is important that customer satisfaction along with the compliance is
important and that can only be achieved when customer is aware of the things that are pertaining
in the organisation (Cao and et.al, 2018). Product is the major criteria that the customer concerns
about and these websites of the companies will portray different products that are being dealt in
the organisation. A website contains different categories that will provide communication
through the contact that are provided as well as the information and the perception of different
products are also depicted.

Social media network: one of the most prominent network of communication in this present era
is social media. Social media is being used by different people all around the globe and it is
connecting almost all the companies with its customers. It is said to be one of the most prominent
advertising platforms and therefore the companies using social media in order to incorporate its
products into customers and in return the customers are generating and opinion about the
company. The companies Waitrose and Aldi set to be dealing with different discount since they
are the supermarket and they provide people with all the domestic as well as a useful things that
are required. The customer service in this prospect deals with different accounts where the
service agent in the organisation will be available on a regular basis for people who ever contact
the organisation for queries. Customer support is such that they treat customers in a very loyal
manner and will address every query that is being raised by them. Through social media the
organisation has depicted different campaigns which are essential for the organisation to attract
customers (Gunarathne, P., Rui, H. and Seidmann, A., 2018). Customer service agents in these
organisations promote actively about every product as well as the services that are being offered
by the organisation. It is necessary that promotion will have to be done in a more useful manner
and that will have to bring a good amount of customer base to the organisation. It is not until
when there is a proper customer base that the customer service will be enhanced in the
organisation in a more enthusiastic manner.
CONCLUSION
The entire report conclusion upon explaining the effects of retail marketing. Through this report
one can easily understand the prominence of retailing as well as the different marketing
strategies that are being present in the retailing sector. The companies that are chosen in this
regard for Waitrose and Aldi. the report explain structure of both the organisations in the
retailing sector along with the prominence they contain. The different aspects of customer
services is being put forth in this report. There are different customer services approaches that
are mentioned in this report which will help the reader to understand the aspects regarding the
approaches. Models like training collaborative model are being put forth in this report where the
approach towards both the organisations. The report explains that customer service is one of the
most prominent aspect and customers are the assets of the organisation. The communication as

well as the relationship is also being explained in this report along with different communication
channels that are being used by the organisations. The two major communication channels that
are used by the organisations in order to move ahead with customer service our website as well
as social media. Both are depicted according to the use of the organisations.

REFERENCES
Books and journals
Adam and et.al, 2020. AI-based chatbots in customer service and their effects on user
compliance. Electronic Markets, pp.1-19.
Cao and et.al, 2018. Post-purchase shipping and customer service experiences in online shopping
and their impact on customer satisfaction. Asia Pacific Journal of Marketing and Logistics.
Gnewuch and et.al, 2017, December. Towards Designing Cooperative and Social Conversational
Agents for Customer Service. In ICIS.
Gunarathne, P., Rui, H. and Seidmann, A., 2018. When social media delivers customer service:
Differential customer treatment in the airline industry. MIS Quarterly, 42(2), pp.489-520.
Janahi and et.al, 2017. The impact of customer service quality on customer satisfaction in
Islamic banking. Journal of Islamic Marketing.
Lee and Lee, 2020. “Untact”: a new customer service strategy in the digital age. Service
Business .14(1). pp.1-22.
Mangano, G. and Zenezini, G., 2019. The Value Proposition of innovative Last-Mile delivery
services from the perspective of local retailers. IFAC-PapersOnLine, 52(13), pp.2590-
2595.
Xu and et.al, 2017, May. A new chatbot for customer service on social media. In Proceedings of
the 2017 CHI conference on human factors in computing systems (pp. 3506-3510).
Zhang, J. and et.al., 2019. Fulfilment time performance of online retailers–an empirical analysis.
International Journal of Retail & Distribution Management.
Online
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