Marketing Management Assignment with ALDI (GC01697)
Table of Contents
Introduction
2.0 Construct a Marketing TOWS for ALDI
3.0 Marketing Objectives for the `Express Ourselves` Marketing Campaign over the 12 months period
3.1 Objective 1: To control its costs/prices to be lower than its competitors
3.2 Objective 2: To apply differentiation strategy to win completion and gain organizational goals
3.3 Objective 3: To ensure the availability of the key resources
4.0 Marketing Mix Plan to achieve these objectives over the 12 months period
5.0 How ALDI can improve their levels of Customer Service as part of their `Express Ourselves` Marketing Campaign
6.0 Conclusion
References
Introduction
ALDI is a Germany-based retailer company which is popular in the UK and also the other countries in the world. For their loyalty to their customers and keep the cheap price and maintain the better quality of their products ALDI has capable to earn market share and make flourish their business. ALDI is a very successful company to enlarge their business in around seventy countries and having moreover 10,000 outlets. ALDI firmly maintains the marketing management and strategies. ALDI divided whole administration and marketing sectors into several departments to ensure the conduction of their company’s progress. The employers and employees of ALDI are very honest and hardworking in their responsibilities. The combination of skilled workers and proper business strategy make the products of the company at low cost and good quality to gain the customers’ satisfaction (Hazelton, 2019).
2.0 Construct a Marketing TOWS for ALDI
Though ALDI conducted several times of their SWOT analysis the management sector of this company is neglected. So in this portion, the proper management techniques and strategies will be discussed and also represents different types of approaches to reduce the problems along with the management field (Cumberbatch, 2018). Generally, SWOT analysis involves strengths, weaknesses, opportunities and threats but in this section, the SWOT analysis will be elaborately analyzed to focus on the management sectors such as Strengths-Opportunities (SO) that related techniques to play the important roles to convert into opportunities (Badger,2 016). The second one is Strengths-Threats (ST) which is a concern with the strategies that have the ability to convert the strength to fight against their threats (Hazelton, 2019). The last one is Weaknesses-Opportunities, similar to the previous one it involving techniques that make the weakness transfer to strength through opportunities.
| TOWS Matrix | Threats 1. The rise of competition due to new entrants in the market. 2. The diminished exchange rate. 3. Price of inputs getting high due to the rise of fuel price. 4. The availability of substitute products getting high. 5. The change of taxes. 6. The bad economic condition. | Opportunities 1. The use of the internet is increasing and E-commerce is also growing accordingly. 2. The rise of the use of social media. 3. Consumer spending is rising due to the increase in household income. 4. Rise of Environment-friendly products and services. 5. Rise of investment opportunity due to low-interest rates. 6. Increase turnover and profit 7. Demand of new products and services. |
| Weaknesses 1. ALDI must pay their rental charges as a large amount of property of ALDI is on rent. 2. The spending on research and development is low in comparison to the competition. 3. The Employee turnover rate is high on the other hand employee motivation and working morale rate are low. 4. Having liquidity problems with a low quick ratio as well as cash flow problems. 5. Reduced public image. 6. Status of the product and service quality. | WT Strategies ● In order to be a strong competitor research and development section must be under serious consideration (W2, T4). ● In order to retain the employees, a better working environment must be ensured (W3, T4). ● Due to the increase of vat, the product price is getting high. ALDI must provide good quality products so that the customer can be satisfied with their spending (T6, W5). ● ALDI must provide home delivery services for taking advantage of their competitors(T7, W6))(Norton, 2018). ● Due to the economic downturn, the demand for this type of image may increase if consumers decide to choose low-priced products. (T8, W7) | WO Strategies ● ALDI should choose owned property through low-interest rate rather than rented property (W1, O5). ● For the reduction of employee turnover, payrolls must be increased as well as giving incentive packages and benefits (W3, O3) ● ALDI can expand its range of products with better quality(W5, O6). ● ALDI must provide a new service of offering the delivery to the door that will be very helpful for busy or elderly people (W6, O7). ● ALDI can make exclusive products and services to increase their public image (W7, O8) |
| Strengthens 1. Having a strong Distribution network with a large number of outlets around the world. 2. Having a low-cost structure and gives a huge competitive advantage. 3. Having a strong financial position and a strong asset base. 4. Having a skilled, qualified, innovative and diversified labor force. 5. Active in social media. 6. Strong supply chain. 7. Low price. | ST Strategies ● For a strong interaction with the customers and for a competitive advance, a strong distribution network should be maintained (S1, T1). ● The strong financial position leads further investment and it helps compete with increasing competition in the market (S3, T4). ● Their innovative teams discover low-cost services (S4, O3). ● Due to the low pricing customers are interested in ALDI’s products (S6, T6) (Collins, 2015). ● A strong supply chain helps LIDL obtain the right resources from suppliers and delivery the right product to customers in a timely manner in comparison with other stores (S7, T7). | SO Strategies ● For attracting customers, market promotion is increasing (S1, S3, O3). ● For attracting the customers, social media and online portal is used (S5, O2, O3). ● Environment-friendly products are invented and sold at a low price to get customer attention(S2, S4, O4). ● Sales can be increased by offering discounts (S2, O3). ● Offering low price give opportunities to increase its revenue compared to main competitors (S6, O6) (Watson, 2016). ● For the launching of new products, the supply chain is improved (s7, O7). |
3.0 Marketing Objectives for the `Express Ourselves` Marketing Campaign over the 12 months period
3.1 Objective 1: To control its costs/prices to be lower than its competitors
The strategies related to the low price but better quality products and services play the most effective roles in the business to gain the consumers’ attention. There are lots of retail companies in the UK and customers always figure out the better products and services at low prices (Hazelton, 2019). So ALDI should try to maintain the low price of their products to their consumers compare to their competitor’s companies. Aldi has to apply the cost control techniques through receiving more by investing less. To remain in a strong position ALDI has to lead the retail sectors that other competitors companies are not considered as the threats or challenges for their business (Hazelton, 2019). The domination in the market share makes ALDI at a high level in economic sales. The entire strategies are effective for ALDI to confirm to keep the low price and provide the better products that bring their development and target achievements………..
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