Marketing plan of ALDI in Australian Market Term Paper, SWOT Analysis (Term Paper Sample)

Marketing plan of ALDI in Australian Market
Contents TOC \o "1-3" \h \z \u Marketing plan of ALDI in Australian Market PAGEREF _Toc470469707 \h 11.Introduction- PAGEREF _Toc470469708 \h 32.Situation analysis- PAGEREF _Toc470469709 \h 33.Marketing objectives- PAGEREF _Toc470469710 \h 44.SWOT analysis PAGEREF _Toc470469711 \h 45. Marketing strategy PAGEREF _Toc470469712 \h 55.1 Marketing mix PAGEREF _Toc470469713 \h 55.2 Marketing mix strategies PAGEREF _Toc470469714 \h 66.Financial Control- PAGEREF _Toc470469715 \h 97.Monitoring and evaluation PAGEREF _Toc470469716 \h 98. Conclusion- PAGEREF _Toc470469717 \h 109.Reference PAGEREF _Toc470469718 \h 11
1.Introduction-
Today’s markets are competitive and diverse, so the buyers have a wide variety of choice to purchase their goods and services. If an enterprise has to meet its targets, it has to understand the needs and wants of the customers and find out the best possible ways that can give them optimum satisfaction (Silk, 2006). For an enterprise its promotional activities will be effective only when they have a different market strategy with objectives set clear.
The time since Aldi has opened its store in 1913, it has emerged as the most reputable retailers in the business world , by giving the customers good values and quality. The goal of Aldi is to provide its customers their daily requirement products and make sure that they are of good quality and value and also guaranty they are of low prices (Aldi.com.au, 2016). Aldi takes its products from the suppliers who specialize in their fields and then Aldi sells it under their own brand labels.
2.Situation analysis-
Market research showed that 80% of the Aldi customers shopped from other supermarkets and these customers nearly spent around €20billion per year in those stores (Dibb, Simkin, 1991). Therefore Aldi has a marketing strategy strictly concerned about loyalty of customers. It tries to put efforts on its marketing by convincing the old customers of Aldi to shop in their stores more often. The other thing Aldi is concerned more about it is that it tries to show its customers that Aldi brands are of equal quality in comparison to its competitors like Heinz and Fairy liquid (Segal, Giacobbe, 1994). To make this more effective, Aldi did a blind taste test amongst large sections of shoppers and the report showed that the customers who liked other brands also like Aldi brands as well. And due to all this Aldi could communicate its quality and value messages more conveniently.
3.Marketing objectives-
Aldi has a very simple goal: “they want to provide their customers with the products and services they buy regularly and make sure that the products and services they sell are on high quality but at the same time at low and reasonable prices that are affordable by the customers”.
The objective of marketing plan is to expand its share in grocery in Australian market. It wants to develop its market share 2.5%. It proposed the “Like Brand” campaign. A single 0.1% sounds very less, but the markets are large and here even 0.1% matters, a single 0.1% is worth around €65million revenue.
To increase the share in market and customer loyalty, Aldi focuses on its marketing strategies more and that is what this case study also tells.
4.SWOT analysis
(Brandes and Brandes, 2015)
To do this more effectively Aldi started a blind taste test throughout amongst large shoppers, and this confirmed that the majority of customers who liked all other brands in the market also equally liked the Aldi brand. All these formed a basis for Aldi’s “like brand” marketing campaign. It provides strong platform for Aldi to communicate its core values and messages to the consumers more effectively. This case study focus on the marketing strategies that are used by Aldi to increase its share in the market and attract more customers in the market.
5. Marketing strategy
The Chartered Institute of Marketing describes the term marketing as the process that identifies, anticipates or predicts and satisfies the customer requirements profitably. In simple language, marketing is referred to as fulfilling the customers’ needs and wants and at the same time earn profits. Philip Kotler defines marketing as “the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Marketing is defined as process to fulfil needs and desires. The process of marketing involves identification, measurement, and quantification of the size of the potential market and the profit.
5.1 Marketing mix
The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place. It involves creating a unique and the right product, sell it at the right place and at the right convenient price, using the best promotional methods and strategies. The marketing mix for every company is different, like every company has their own rules and regulations, goals and objectives the same way they have a different promotional strategies. Aldi’s marketing mix aims at providing high quality products that are cheaper and also alternatives or substitutes for the other products of other high brands (Marketing mix;master the 4 ps of marketing, n.d.). Aldi’s marketing mix therefor lays its focus on:
Product: they have their own specialized brands which create a positive financial outlook for Aldi. Although product mix is low at Aldi but they are still able to achieve a strong customer base with their cheaper products and convenience (Reynolds, Cuthbertson and Bell, 2004). It can be achieved through fast checkout practices and easy layout.
Price: it is the crucial aspect in the marketing plan. Aldi prices are cheaper than competitors and they offer quality of which is upto the standard of major retailers in the industry (Simon, 2015). Aldi was the first grocery retailer to introduce a national pricing policy. Aldi believes that no matter where consumer live, consumers should be able to get groceries at cheaper prices.
Promotion: above and below the line promotions are used by Aldi. Aldi strongly encase the popularity and with the growing usage of social media like facebook, also Aldi is now planning to advertise on television (Chaffey, 2000).
Place: it is an important aspect in the marketing mix. It involves about the place, where company is planning to sell its the products. It also involves how Aldi makes their products available for people to purchase.
The AIDA model can be used to demonstrate the aim of any promotional activity:
* it initiates awareness amongst the customers
* tries to create interest and desire amongst the customers to buy the products or service
* leading and going towards the customers making them willing to purchase it
Aldi uses other variety of communication channels to increase the impact of their promotional activities on the customers and also meet the aims of the AIDA.
5.2 Marketing mix strategies
Enterprises need to have a marketing mix that is balanced so that the needs of the customers are met. It lays its focus on giving the customers best possible products and services and at a lower price possible. Every Aldi buyer be it electronics, meat, vegetables etc all are best in their respective fields. They search for the products round the world, so that they get the best quality products that they can sell under their own brand label. One of the most difficult task while developing a marketing mix is the selection of price. The different strategies for pricing that are used are:
Market Penetration : to help the new products enter the market and gain the market attention, charging low prices
Competitive pricing : price the products at lower prices than the competitors
Strategic pricing: focussing on the brand positioning and the pricing of the product so that higher prices for the product can be charged
Competitive pricing is the main strategy for Aldi. It offers its products at lowest prices possible as it buys in large volume. As they buy in such large quantities it further allows them to negotiate the prices with their suppliers. This is known as economies of scale. Aldi keeps its store layouts simple so that it can use those costs at other required field and lower down the cost. This refers to that Aldi can keep their focus on giving goods priced at a low amount possible to its customers. When Aldi has to choose new store locations it checks the following:
How many people are visiting the area and the demographics
The location where the store will be located, the store should be located at a place which can be reached by people easily and conveniently
The stores should be easily accessible and public transports should be available easily too
The parking space is the main concern since the traffic is increasing day by day
ABOVE THE LINE PROMOTION- If Aldi has to increase its market share it has to make sure that the promotional activities it uses is ensuring a balance. For example to make sure customers loyalty it had to communicate quality and value messages. Promotion helps to :
Improve the goodwill, and people recognize the brand more
Demand for the product increases
Highlight products and services
Above the line promotions are paid, like advertising that attracts a large number of people. These all includes mass media such as television, radio, newspapers and magazines to reach the large number of people, but this leads to the increase in cost. It may also be hectic to catch the specific audience. Aldi uses a wide variety of above the line methods so that they can reach to the customers.
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