Assessment Of ALDI Marrketing Plan

Background of the Company

Discuss about the Assessment of ALDI Marrketing Plan.

Today, marketing is a fundamental aspect and have assisted most companies around the globe to achieve growth potentials. Apparently, institutions that value total quality management and customer satisfaction usually position the business at a good point to compete favorably in the market (Wilkie, et al. 2015, p. 424). To favorably compete in the dynamic business environment, most organizations align their objectives with its functions units including the finance, human resource, and operation management.  The selection and targeting of the right customers and provision of customer-centric products are among the primary considerations that most business has relied on to develop marketing strategies.  Efficient marketing requires the employment of professional marketers who can perform an appropriate media planning and ensure enacted measures culminates to the desired objective. The most important factors of production are the qualified marketing department, operation management, and above all the financial resources (Stannage, 2106).

Marketing, therefore, is the process of positioning the product to the consumers to influence their buying decision (Kotler & Keller, 2016). A focus is usually on the customer’s purchase behavior and afterwards informing and promising them that the qualities they might be seeking are contained in the product. In the report, I have explored the marketing strategies used by Aldi Australia in overcoming the fierce competition that has existed in Australia market for a long period. Also, the report has described the background of Aldi, followed by an analysis of the marketing strategies the company has used since the incorporation in 2001, and further offered recommendations to boost marketing strategies currently used. From the conclusion, it is apparent that marketing is a critical function that plays pivotal roles in the success of business, more so, the Aldi Stores in Australia.

History about Aldi dates back the year 2001 when the players in the grocery industry recognized its presence in Australia market. Before this period, the company was in operational but under different names and if not, it was under different management and existed in other countries. Aldi operates beyond the borders, for instance, most of Europe, and it majorly deals in the grocery industry (Grant & Butler, 2011, p. 49-90). Because the report intended in assessing the marketing strategy plan for Aldi in Australia, other areas like the United Kingdom and the United States where the company operates were not captured. Despite starting when a significant market share was dominated by Woolworth and Coles, the embrasure of technology and adoption of low pricing strategy has enabled it overpower these competitors and emerge as one of the best supermarkets to shop in Australia (BBC, 2015).

Marketing Analysis

Besides, Aldi makes a monthly sale of more than a billion every month where an average of 6.1 million people shops in Aldi stores located all over the country. The investment of about $2.8 billion in the grocery industry shows that the company is large and there and it records an annual turnover of about $7billion. However, measures need to be enacted to enhance the implementation of marketing strategies, in consideration of the changing customer needs and preferences. The company is currently aiming at establishing more stores in the Southern region of Australia to increase the number of stores from about 450 stores (Ruddick, 2012). However, the expansion in the major city has been a problem because of the discriminative State regulations governing planning and developments in urban cities. These bureaucracies existing for smaller firms to establish development projects in the major city has negatively impacted on the pace of infrastructural growth for Aldi. This restriction has been a major setback to the administration of the company.

In the recent days, the technological breakthrough has been the primary factor that has significantly boosted the efforts of sales persons and promoted media planning. Aldi has appropriately utilized the, marketing mix “4ps”, promotional mix “Mc Kinsey 7s”, opportunities and strengths and financed promotional and marketing plans (Pash, 2016).  A thorough understanding of the external environment through the use of environmental tools assists the management to gain knowledge about; the magnitude of competition as well as customers purchasing behaviors (Solis, 2011, p. 201-202). Relying on the internal environment is importance in customizing on the strengths and opportunities. Over the period, Aldi has been keen in applying a marketing approach that tally with the company financial ability (Pash, 2016).  This part has, therefore, assessed the marketing strategies and further proposed other approaches to be applied by the management of Aldi.

Aldi is a famous company in the provision of quality products at relatively low prices. In addition, its marketing strategies are well known to buyers because they focus much on the market needs and company mission. Indeed, Aldi has been more influential to suppliers and manufacturers to offer quality products at lower prices (Muston, 2014). The company has, however, applied the following sales and marketing measures to convince and attract customers. As we talk today, Aldi is one of the leading sellers of grocery products to the most of the people in Australia who are known to uphold price sensitive character.

ALDI Marketing Strategies Since Inception

First and foremost, Aldi has utilized pricing strategy to win the favor of the customers. The approach has involved selling quality products to customers at the lowest price. Despite the company just being a dealer, it has managed to offer its products to consumers at affordable prices. Additionally, their services have been satisfactory. From statistics, the company offers its products as cheap as at 25%, in comparison with the prices offered by other supermarkets (Chung, 2015).

Secondly, Aldi has applied marketing mix and sales promotional mix. These two are the major approaches used by companies. Aldi is not an exceptional. The marketing mix has included the elements of price, product, place and price (Voberda, et al. 2011). The price aspect however, was a major strategy as discussed above. The marketing mix led to the distribution of the products near customers. Aldi has established most stores at convenient places that are reached by customers. Marketing mix has, therefore, been greatly depended on by the company and it was successful because of the unlimited support from the shareholders (Lancaster, et al. 2002). Furthermore, it has utilized advertising through electronic media like the Television and Radio.  It has an excellent record in monitoring the effectiveness of the advertising media as well as media planning. Apparently, these two forms are reached by most of the target market served by Aldi.

Also, Aldi has been using differentiation strategy. Under this approach, it has ensured that the right products are offered to the customers. They offer products that are needed by consumers but not any product (IBIS world, 2016). And the interesting part above all is that these products are usually of the best quality. Users found it very unusual to shop in Aldi stores where there is a variety of products, of high quality and at the lowest cost. Sincerely, this approach is the best holistic experience customers have had from Aldi.

As per now, Aldi is still performing well in the grocery industry. The success is not only in Australia but also experienced in the other parts where the company has affiliates. With the developments experienced in technology, businesses are imperatively required to perfect the current operational and marketing approaches (Bradley, 2010, p. 90-120). Therefore, the enhancement of these strategies can be possible through normal changes based on the prevailing market conditions. Some of the additions and considerations that are supposed to be implemented by Aldi are discussed below:

Strategic Options for Aldi Moving Forward

First, Aldi has to embrace integrated marketing communications. Through this method, the marketing approaches utilized are usually complemented by the others. Those that become ineffective are, however, are boosted by the other. Consequently, a large number of customers will be reached. However, this approach works well if the organization has enough funds to finance the initiative (Kotler & Keller, 2016). But the long-term effect is that it enhances most number of the targeted population to reach more information.

Secondly, it should adopt creativity and innovations through incorporating technology into organizational processes. For example, talented employees indeed bring new ideas and methods of overcoming the fierce competition on the market. Being a company that has redefined the grocery industry in Australia, and applying the cost leadership approaches, it will be ironical to found that the same company is lagging behind in technological know-how. The adoption of technology will automatically enhance the use of social media, internet, and other electronic sources to promote its products (Lancaster, et al. 2002). In the long run, the company will found itself in a scenario where other transactions will be conducted by e-commerce.

Thirdly, Aldi should focus on the use of publicity. Substantial investment in publicity will foster a good relation with the customers who will consequently develop customer loyalty. Though it has been involved in a marketing campaign, this trend should continue by adding more focus on it (Shimizu, 2016, p. 25-26).

Lastly, it should enhance the marketing mix strategies by using appropriate sales promotion techniques. Through market research, the firm can understand when to use a particular form of marketing and sales promotion mix (Reicheld, et al. 2010, p. 121-126). For these methods will timely inform the consumer about the new developments in the products and price to offer them an opportunity to perform price comparison. Most importantly, Aldi should use appropriate form according to customer segmentation to ensure everybody has sufficient information about the company.

Conclusion

Wrapping up, it is apparent that marketing is a fundamental subject for any organization. An effective marketing strategy will be the reason for the success, contrary in which failure will be inevitable.  The management of Aldi applies effective sales and marketing techniques that were much customer-centric which have resulted in this unquantifiable success. For instance, the pricing strategies have attracted most customers to prefer purchasing the products from Aldi stores. However, this method was not the only strategy that resulted in the success. There are others like advertising, public relations, market campaigns, differentiation and more. It thus implies that there is a great need for businesses to consider all possible measures for them to withstand the changing market. Most importantly, the opportunities and strengths should be adequately relied on in turning the hostile external environment bearable.  The marketing mix 4ps and Mc Kinsey 7s model should appropriately combine for the goal of meeting organization short and long term objectives. Through embrasure of the discussed topics, Aldi has managed to reach where it is and considering the plans that are already in place and the company will still grow.

References

BBC, (2015). Aldi overtakes Waitrose’s market share. BBC News dated 8th April, 2015. . [Online] Accessed on 19^thJan, 2017, from: https://www.bbc.co.uk/news/business-32218170

Bradley, Nigel (2010).Marketing Research: Tools and Techniques. Oxford University Press, Oxford, p.90-120

Chung, F. (2015). The Supermarket switch is on as Aldi takes top award in customer satisfaction: Business retail July 21 2015. Accessed online on 19^th Jan, 2017, from: https://www.news.com.au/finance/business/retail/the-supermarket-switch-is-on-as-aldi-takes-top-award-in-customer-satisfaction/news-story/3ce35413bb26d01118190010c9cb0916

Grant, R., & Butler, B. (2011). Contemporary strategic management: An Australasian perspective, John Wiley and Son Australia, 5(21), 54-90

IBIS world, (2016). Supermarkets and Grocery Stores in Australia: Market Research Report. Retrieved on 19^th Jan, 2017, from https://www.ibisworld.com.au/industry/default.aspx?indid=1834

Kotler P & Keller, (2016). Marketing Management 15^th Global Edition published by Pearson Education Australia Pty Ltd.

Lancaster, G., Massingham, L. and Ashford, R. (2002). Essentials of Marketing: Fourth edition. New York: McGraw-Hill.

Muston, P (2014). Marketing Practices and Strategies for Aldi: slide share, retrieved on 19 Jan, 2017, from: <https://www.slideshare.net/paulmuston3/aldi-marketing>.
Pash, C.  (2016). Aldi opens its battle with Coles and Woolworths in South Australia: Business Insider Australia. Accessed on 19^th Jan, 2017, from: https://www.businessinsider.com.au/aldi-opens-its-battle-with-coles-and-woolworths-in-south-australia-2016-2

Ruddick, G. (2012). Billionaire Aldi heir Berthold Albrecht dies at 58. Retrieved on 19^th Jan, 2017, from: https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9729434/Billionaire-Aldi-heir-Berthold-Albrecht-dies-at-58.html

Reicheld, Z and Sasser, N. (2010), “Enhancing Customer Retention Through Relationship Marketing”, Journal of Marketing, 6 (11): 121-126.

Shimizu, Koichi (2016). Co-marketing (Symbiotic Marketing) Strategy: (Japanese) 5th edition, Souseisha Book Company, pp.25-62.

Stannage, T. (2106).‘Marketing help: Marketing Strategies that work.  Business Consultancy Services, weblog post, retrieved 19 January 2017, from: <https://timstannage.com.au/marketing-help/>.

Solis, B. (2011). Engage: The Complete Guide for Brands and Businesses to Build, Cultivate, and Measure Success in the New Web, John Wiley & Sons, Inc. pp. 201–202.

Voberda, H., Morgan, R., Reinmoeller, P., Hitt, M.A., Ireland, R.D., Hoskisson, R. (2011) Strategic Management: Competitiveness and Globalization, South Western: Cengage Learning.

Wilkie, D., Johnson, L., White, L. (2015). Overcoming late entry. The importance of entry position inferences and market leadership: Journal of Marketing Management, 31: 424