Strategic Marketing: A Report on The Aldi Company

Scope:

In increasingly competitive markets, consumers have a greater choice over where they buy their goods and services. For an organisation to meet its business objectives, it has to find out what

consumers require and then identify the best way in which it can satisfy these needs and wants. Creating a competitive advantage can be difficult. A unique marketing strategy with clear objectives

is vital to ensure effective promotional activity.

Your task in this case analysis is to answer two questions by critically analysing Aldi’s market situation. Please do not just describe events, although you should read Aldi’s history to understand

the background to your analysis. You should use the principles and concepts that you have learned throughout the unit to answer the following three questions:

1. What marketing strategy or strategies has Aldi has adopted since it was created? For Australian-based students, you might like to focus your analysis on the Aldi Australia experience. For students studying with partner institutions in New Zealand1, Singapore and PNG, your analysis will likely take on a more international perspective. Answer this question by applying one or more of the theoretical approaches discussed in the course.

2. What marketing options can you describe for Aldi if it wishes to remain a successful organisation throughout the next decade? Answer this question based on the circumstances that exist in 2016 and your best forecasts of relevant future industry factors. These are wide-ranging questions and you should undertake extensive independent research into Aldi and its industry. You should explore different aspects of these issues and incorporate them into your report. This is a practical assessment of a real company, but you need to show an understanding of theory and research in your evaluation and suggestions.

Process

1. Begin to gather information about Aldi and its marketing-related strategies. There are a range of sources you can make use including the company’s own corporate website and related publications, academic journals, business press and media, blogs and so on. The quality business press such as Forbes or Business Week or the Economist are in some ways good places to start.

2. However, you need to begin to study relevant course materials as the task requires you to analyse and evaluate Aldi’s marketing strategy in relation to theory, frameworks and research.

3. Consider each of the two questions carefully and begin to relate practice to theory in an attempt to answer each of them. The questions explicitly direct you to specific aspects of the unit material and to specific types of models, tools and theories.

4. It should be clear that there is no definitive right answer here. This also mirrors reality, in that companies are not able to find a single solution or pathway; they have to make difficult choices from alternatives. In the light of that try to explore different aspects of the two questions – there are no ‘correct’ answers and lots of valid arguments for and against all kinds of alternatives. The merits of your argument will depend to a large extent on how much evidence you can cite to support your point of view; that is why this is called a research project.

Possible Answer

In the past marketing was a simple part of operations that entailed delivering products or services to consumers (IšoraitÄ—, 2016). Nowadays,  strategic marketing extends more than this, to focus on demand management, which means product flows and active cost control to create value for an enterprise and its clients. The background of the Aldi Company provides a profound foundation to learn about the company’s marketing mix. Understanding this history will help appreciate the strategic positions taken by the company to become a leading supermarket in Australia. This report will then suggest various strategic positions that the company can establish to remain relevant and competitive in the Australian market.

Background to the Company

Aldi is a multinational company incepted in the year 1913, as a small food shop in the town of Essen, Germany (Brandes, and Brandes, 2015). The company is now a leading supermarket selling all types of household items to their customers at low prices. The company offers a variety of products at fair prices that appeal to both price-sensitive clients and enthusiasts (Aldi.com.au, 2015).  The primary target market of Aldi Company is the middle class whose motivation of purchase is low prices (Aldi.com.au et al., 2015). Though the company does not offer high-quality products, it has a philosophy of continuous improvement of the quality of their products to make them the best in the market (Aldi.com.au et al., 2015). The company also manufactures their own branded merchandise which they trade at lower costs. This has been instrumental in helping the Aldi Company to gain a substantial share of their market

Aldi opened their first store in Sydney, Australia in January 2001, and by the year 2004, the company owned another 44 stores in Australia, particularly, in South Wales (Australia Food News, 2015). Currently, the Aldi company stores control over 5 percent of the total household expenditure in Australia, and there is a possibility that they will make it to 10 percent in the near future (Australian Food News, 2015). Nevertheless, the company faces stiff competition from other stores like Foodland and Coles Myer, and if the company is to actualize this vision, it will have to develop profound marketing strategies that beat the current competition in the market (Aldi.com.au, et al., 2015). Notably, the Aldi Company bases their marketing plans on the 4Ps strategy. As noted above, the company offers their products at the lowest prices to attract middle-class consumers (Brandes et al., 2015).5). Further, the company offers unique brands of their own products in some selected commodities. Lastly, the company advocates on above the line, below the line, and public relations as their marketing strategies in the Australian market. (Brandes et al., 2015.

Marketing Analysis

The Aldi Company has adopted the 4 Ps of marketing as the main marketing strategy. This revolves around the product, price, place, and promotional strategies adopted by the company. Detailed below is a comprehensive analysis of each of the 4p of marketing adopted by the Aldi Company….

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