Discuss about the Consumer Behavior for Aldi.
Social influence plays an important role in making behavioral choices at different stage in an organization. Consumer choices differentiate from place to place and depend upon different factors that are important for a firm to understand their distinguished behavior. Consumer behavior is the buying behavior of an individual that involves purchase of a product of their choice. A firm needs to analyze consumer behavior in order to sustain in the market. It is recommended that the buyer’s reaction to an organizational decision making plays an important role in developing long-term sustainable objectives (Solomon, 2014). The marketing concept focuses upon the various techniques that are used by an organization in order to develop aggressive market strategy in order to understand market. The marketers need to develop strategies in order to predict behavior of a consumer in relevance to the firm. This report is based on analyzing the consumer behavior and determines the factors that are responsible for influencing the individual decision making. There are different factors in the environment that are responsible for influencing individual consumer behavior (Hawkins, Best & Coney, 2010).
Aldi is an ultra cheap consumer retail store originates from Germany. They are known for selling high quality, exceptional goods at a competitive price. The company is focusing on a goal to provide full range of grocery at a low price. They claim to offer products in a smarter way. Aldi’s strategic marketing policies have helped the company in gaining accomplishment in late year. The way in which company advertises their product has astonished a vast range of consumers in Australia. The consumer’s are highly influences with the wide range of products that they are providing. Within a very short tenure the company has expanded its operations in Australia (Reynolds, 2015).
There are various factors that are responsible behind influencing individual consumer behavior. It is important for an individual to understand the factors that are influencing a wide range of section. The social factors play an important role in influencing the individual consumer behavior. A large group of people show case similar kind of behavior. The society possesses different form of social behavior that influences an individual. Every society has some form of social class that plays an important role in designing individual consumer behavior. The marketers need to understand the individual consumer behavior and should work according to their capacity (De Mooij, 2010). Social perception related to a brand plays an important role in the buying behavior. Consumer behavior largely depends upon the social group. While making decision about any product they plan in advance so that they are opting for a correct product. A consumer from a lower class will be considering the price in order to buy a product whereas a consumer from an upper class will be more considerate about the quality of a product (Lindquist, & Sirgy, 2009).
In case of Aldi the consumer are driven because of the low cost product offering. It is essential to notice that the brand is causing a threat on the other local and International brand in Australia. The major reason behind a wide range of consumer section is the low price and high quality. Aldi believes in following the products of good quality at a competitive price. Like this they have managed to reach the desirable goal. In the recent t time the technology has overtaken the market in a manner that it has helped in influencing the behavior of the consumer. The behavior largely depends upon various social factors. The organization needs to consider the changing social scenario in order to understand the desirable market. There are various social factors that are influencing the consumer behavior of the brand. As per the recent studies the social factors has become a great force in influencing the behavior in Australia. Customers are seeking advice from the social group in order to understand the individual behavior (Lee & Chen, 2010).
There are various cultural trends that are influencing the individual behavior. The evolution of the social networking has become one of the driving tools influencing the individual consumer behavior. Social networking sites Facebook has become an influencing factors in the decision making. Decision of large number of people depends upon the reviews of a product or a service on the social networking. Aldi is using social networking as a tool to influence the decisions of the individual consumers (Lantos, 2015). The consumer buying decisions depend upon the individual. It is highly recommending other people to make a buying decision. It is interesting to understand that the individual decisions are highly influenced due to the cultural trends occurring in the society. One is planning to buy the product due to its good reviews. Especially in the case of low income section the decision is influenced. It is however important for an individual to understand the nature of consumers in the different section of the society. The cultural trends are important for Aldi in influencing a large section of the society. On a long run it is important for a marketer to understand the individual behavior (Jobber & Ellis-Chadwick, 2012).
Reference Group
In certain times it is important that the decision related to an individual buying behavior is undertaken in order to make decision making. The reference group is the close social group while making decision in the organization. It is evident that the decision relevant with the reference group. The reference circle is the group of friends, relatives etc who play as a major influential factor in making decision. Decision related to the product is based on influence of their closed people. Aldi is known as a super cheap brand. It is important for the marketer to understand the behavior of the consumer in order to understand their behavior. The reference group is thereby helps in forming decision in order to make decision related to a product. It is thereby observed that an individual seeks advice from the nearby group in order to make a desired decision (Malhotra, 2008). It is important on a long run to analyze the social influential factors for a brand. People tendency is related with the buying behavior of their close people. Aldi has proven to develop a long chain of customer due to a huge influence from the reference group. In such a situation it is important to assimilate the behavior of the individual consumer and to develop policies accordingly. It is observed that there is an increase in the consumer growth in case of Aldi. People of each section whether lower or upper are buying goods from Aldi. It is due to the fact that the people are getting influenced due to the lower price range. This has helped in making decision related to purchases (Belz & Peattie, 2009).
Aldi has however managed to launch its own range of products. This has helped the brand in attaining a secured market place. It is causing a huge competition to the other retail stores like Woolworths and Coles. The super cheap price of the product has helped the brand in attaining a secured market position.
In such a situation one can understand the role of the social group in decision making of a brand. This is formally understandable that the reference group and the cultural trends are causing a change in the behavior of the customer in a long run. Aldi has understood importance of the social factors requires in order developing futuristic policies related to growth. A large group of people show case similar kind of behavior. The society possesses different form of social behavior that influences an individual. Aldi as a brand has developed as a competitor to the local and the international brand due to its futuristic consumer behavior strategy. They do understand the role of the strategies and there importance in today’s scenario. In order to develop itself as a safe brand they have developed serious futuristic policies that have helped in attaining a secured market position (Aaker, Kumar & Day, 2008).
It is necessary to understand the role of the marketer in understanding the consumer behavior policies. It is evident from the theories that the social cultural policies are highly affecting an individual behavior on a long run. The marketer needs to develop the policies in a way that it helps in understanding the individual consumer behavior. This is evident that the social influences these days are playing a major role in consumer buying decision. It is necessary that the marketer should develop policies in order to attain consumer attention. It is seen that Aldi has strategically developed itself as a well-known consumer brand in all over Australia. Under such a situation it is necessary to develop marketing mix in such a manner that it help in addressing to the consumer behavior (Zentes, Morschett& Schramm-Klein, 2007).
The marketing mix need to be developed in a manner it helps the brand to attain sustainable objectives.
Recommendations and Conclusion
In such a fluctuating retail market it is evident that the marketer should develop policies in a manner the brand is able to accumulate market position. Aldi has developed itself as a successful consumer brand. The social cultural influence need to be given special consideration while development of the policies. It is necessary that the brand need to develop policies considering various social group. This will help the brand in attain a successful market place. Aldi need to understand consumer m mentality while framing policies. This will help the brand in understanding the balance in between the marketing policies and consumer behavior. The report incorporates various consumer behavior theories necessary to be considered while framing marketing strategies.
References
Aaker, D. A., Kumar, V., & Day, G. S. (2008). Marketing research. John Wiley & Sons.
Belz, F. M., & Peattie, K. (2009). Sustainability marketing: A global perspective. Chichester: Wiley.
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East, R., Wright, M., & Vanhuele, M. (2013). Consumer behaviour: applications in marketing. Sage.
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Jobber, D., & Ellis-Chadwick, F. (2012). Principles and practice of marketing (No. 7th). McGraw-Hill Higher Education.
Lantos, G. P. (2015). Consumer behavior in action: Real-life applications for marketing managers. Routledge.
Lee, S. M., & Chen, L. (2010). The impact of flow on online consumer behavior. Journal of Computer Information Systems, 50(4), 1-10.
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Quester, P., Neal, C., Pettigrew, S., Grimmer, M. R., Davis, T., & Hawkins, D. (2007). Consumer behaviour: Implications for marketing strategy. McGraw-Hill.
Reynolds, E.(2015). Why do Australians love Aldi? The secrets to the supermarket’s phenomenal success. (ONLINE). Retrieved from: https://www.news.com.au/lifestyle/food/why-do-australians-love-aldi-the-secrets-to-the-supermarkets-phenomenal-success/news-story/fb4c5e30228f5f23b720f7b0caee3018 (Accessed on: 22 April 2017)
Solomon, M. R. (2014). Consumer behavior: Buying, having, and being (Vol. 10). Engelwood Cliffs, NJ: Prentice Hall.
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Zentes, J., Morschett, D., & Schramm-Klein, H. (2007). Strategic retail management. Betriebswirtschaftlicher Verlag Dr. Th. Gabler GWV Fachverlage GmbH, Wiesbaden (GWV).
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