Answer To: Microsoft Word - Session XXXXXXXXXXAssignment 2 Marking Guide Page 1 of 5 MKT00720 – Marketing...
Sarabjeet answered on Sep 22 2021
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Executive Summary
This report is a brief overview of the marketing strategy adopted by supermarket chain Discount of Aldi because of its beginning. In a nowadays highly competitive market, it's significant for industries to establish a sustainable and viable environment of business. This will also help them meet the requirements and needs of consumers, which will be help them to retain and attract consumers while giving them a competitive benefit in market. It includes a five-force analysis of SWOT and Porter to help identify threats and opportunities to the Australian grocery business. It has also been seen that the profits of the grocery business have been reduced because of fierce competition or customer bargaining power. Aldi faces fierce competition from industries, for example, Coles-Myer and Woolworths, which may capture nearly two-thirds of the market for the grocery business. Aldi's commitment to reducing costs and improving product quality to attain an important competitive benefit is strategically important. Aldi must first analyze and then explore available strategic marketing options before developing some strategies to stay successful in the next few years.
Contents
Executive Summary 2
Introduction 4
Background 4
Aldi’s Marketing Strategy & its Analysis 5
Marketing Mix (4 Ps & 4 C's) 5
Price, Place and Product strategies 5
Promotion & Communication 7
Market Segmentation 7
Ansoff Matrix 10
Aldi’s Current Market Situation & it’s Analysis 10
Comparison with Competitors 10
Recommendations to Move Forward Successfully 11
Conclusion 11
References 16
Introduction
Marketing is a science or an art that enable people to build relationships with clients thus they can develop, advertise or sell their brands or products moreover services. In today's fast-changing competitive environment, lots of industries find it very difficult to achieve economic sustainability and survivability over the long term. In this case, industries utilize different marketing techniques to develop maximum probable customer and consumer satisfaction for financial sustainability as well as competence. Therefore, for the company, it’s significant to know the different marketing industries moreover marketing tools involved to attain competitiveness.
Background
Aldi (Albrecht Discount) is the supermarket chain discount with around 10,000 stores in 18 countries and its headquarters in Germany. Its total turnover is predicted to exceed 50 billion euros (Abdullah Saif, 2015). This well-known chain was found in 1946 by two brothers, who took over the mother's small grocery store, which opened in Essen in 1913 (Australian management magazine Ruddick, G. (2016) 'Aldi Background', Australian Journal) For management, page 6, page 38). By 1960, Aldi had about 300 stores, but after the dispute over to sell cigarettes, they decided to spin off the business. This led to Aldi being divided into two different teams, Aldi nord and Aldi Sud. Theo Albrecht controls Aldi Nord in Essen, northern Germany, and his brother Karl Albrecht controls Aldi Sud in south of South Moorheim. Globally, Aldi has also developed its business to 18 countries and has important operations in the US, France or the UK. Aldi Nord is answerable for its operation in the US in France, the Netherlands, Poland, Belgium, Luxembourg, Spain, Trader Joe and Denmark, while Aldi Sud is responsible for Slovenia and Austria and in Ireland, Hungary, Switzerland, UK, Australia and the US (named Aldi) (Calvo Porral and Stanton, 2018).
Aldi’s Marketing Strategy & its Analysis
Aldi is the supermarket chain that has been very successful worldwide. This is because of the marketing strategy it follows, enabling it to grow successfully or compete in nowaday’s highly competitive global marketplace. Since its inception, Aldi has also pursued cost leadership strategies to remain invincible in the highly dynamic and competitive Australian market (Chatterjee, 2017). Because Aldi follow "cost leadership" strategies, its marketing costs are low and rely on catalogs, web as well as local news ads. The marketing approach is essentially product-oriented moreover pays more attention to price or special purchases. It offers many products at reasonable prices, including dairy, bakery, household goods, food, fruits, and vegetables to attract consumers. Additionally, Australian Aldi offers “special purchases” each Wednesday and Saturday, which are changed once a week to arouse customer curiosity. It spend nothing on the public relations furthermore spends little on complex statistics (de Haas, Herold, and Schäfer, 2019). Moreover, Aldi will not provide free shopping bags to its customers and will charge a deposit of $2.00 to use the shopping cart and return it to the returning cart.
Marketing Mix (4 Ps & 4 C's)
Price, Place and Product strategies
Philosophy of Aldi's business is to concentrate on the essential investments or avoid pointless investments to provide clients with the greatest probable savings (Gordon, 2012). According to ABC, “Aldi's only cost increases the purchase price by 13%, logistics,...