Marketing Management Sample Assignment (GC01699)
Table of Contents
Introduction.
2.0 TOWS Matrix for ALDI.
3.0 Marketing Objectives for the `Express Ourselves` Marketing Campaign over the 12 months period
3.1 Objective 1: Strategize to compromise cost while providing high quality than the competitors
3.2 Objective 2: Establishing different strategies for a new chance to achieve targets.
3.3 Objective 3: Ensuring resources and available factors.
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 was founded by Karl and Theo in 1946 with their idea of expanding their mother’s grocery store. In 1960, this supermarket company started to get popular in Germany and at that time it had 300 locations. It was expending well with affordable costs that the public demands. Later the company had to split into two parts for a simple disagreement of the brothers on selling cigarettes. Karl started to run Sud Aldi in the south of Germany and Theo ran Nord Aldi in the north of Germany. After seven years till then, Sud Aldi expanded and opened stores in Austria. Nord Aldi was not too far from their expansion and they also started to open stores in many other countries including Netherland in 1973. Currently, the company is doing great serving 70 countries with more than 10,000 stores worldwide (Kantar, 2015).
2.0 TOWS Matrix for ALDI
To improve Aldi’s condition with proper SWOT analysis a chart covering the company’s threats, strategies for strengths, opportunities and even weaknesses must be included. However, there does not explain much to the management if it is not clear enough with the TOWS matrix. Strengths against the threats (ST), taking advantage of a weakness with eliminating threats (WT) and strength- opportunities (SO) are listed down:
| TOWS Matrix | Threats 1. Numerous new entrants as a threat in the marketing system. 2. Deprecating rate of the exchange. 3. Fuel becomes more costly and affecting inputs. 4. The challenges are raising to compete with other companies. 5. Alternative products are becoming more affordable. 6. Change in tax. 7. Difficulties to stand out. 8. Poor economy. | Opportunities 1. Daily internet usage is increasing and e-commerce is growing. 2. The number of users in social media expanding every day. 3. The income is raising for daily needs. The growth of the economy stays low since prices are not varying. 4. Government is helping to increase Eco-friendly products with valuable services. 5. Bigger projects are becoming a source of opportunity since interest is still low. 6. Profits increasing with turnover rate. 7. Offering of latest services and new products. 8. Deli expanse is raising. |
| Weaknesses 1. Maximum stores of ALDI are not their own space. Whereas, they are using it while paying rents for space. 2. Poor amount of cost investment in research and development for the company to compete with others. 3. ALDI has high employee turnovers and low job motivation among employees. 4. The ratio of assets and liabilities is very much fluctuating in ALDI’s case. It results in a cash flow problem. 5. Holding the brand image by offering the best quality. 6. Services offering through online. 7. Well known for affordable products. | WT Strategies · ALDI’s competition is very high. Therefore, the proper expanse needs to perform on research. · Offering a comfortable environment in ALDI with proper incentives can help to keep the staff to stay longer in their jobs. · For holding customer satisfaction, ALDI can help to offer discounts on regular items with an increased vat rate (Quinn, 2015). · Providing services like home delivery will help to outperform ALDI to compete for more (Anon, 2014). · Because of economic recession customers look for cheaper products with good quality. | WO Strategies · Raising the number of own properties with finance ownership, which will include low-interest rate can help to manage more space to give those for rent. · Since costs are low recently, reducing turnover rate can be improved by time to time payments of employees and providing them a good amount of facilities. · Various categories of products in their best quality and offers can manage ALDI to keep their customers satisfied and still receive profits (Quinn, 2015). · Home delivery service of ALDI’s can help the senior citizens (Hiscott, 2015). · The company can create sections of affordable and cheap products including sections of deli products to fulfill customers’ demands. |
| Strengthens 1. ALDI offers a great distribution network with a good number of stores. 2. The success of ALDI mostly relies on cheap product selling and it works as an advantage of the company. 3. The company image already stands out for ALDI’s positive reviews. 4. Qualified employees with good skills in marketing hold the company image of ALDI. 5. The branding image of ALDI is quite popular in social media. 6. Cost friendly 7. Good resources of new items 8. Financial leverage | ST Strategies · Great number of distribution networks will help to compete with other companies. · Investment in intangible ideas using financial aids of the company. · Coming up with innovative ideas for affordable products and alternatives for expensive products. · Pricing variation offers many types of customers to come and buy from ALDI (Peralta, 2015). · Other companies are facing difficulties to keep up with ALDI since they have a strong supply system and proper resources to collect items (Butler, 2015). · Poor economy fails to impact this company since it maintains a balanced financial leverage system (Anon, 2015). | SO Strategies · Various categories of products will get customers’ attention and ensure good marketing. · Online branding through the website and social media to establish its presence to the customers. · Producing budget-friendly items using innovative ideas so that they get sold easily. · Discounts and offers increase the marketing value of ALDI since buyers prefer sales and low-cost items. · Low pricing on valuable items offers ALDI to avoid turnovers (Campbell, 2016). · Supply chains increase the marketing of ALDI with new products and with good offers (Butler, 2015). · ALDI uses its financial leverage for expanding the company and ensuring profits (Anon, 2015). |
3.0 Marketing Objectives for the `Express Ourselves` Marketing Campaign over the 12 months period
3.1 Objective 1: Strategize to compromise cost while providing high quality than the competitors
Aldi always works on following the strategy of keeping their price of products low. This results in tremendous success ensuring enough profit for the company. They identify the number of costs included in operations and work effectively on reducing or balancing those (Witcher & Chau, 2014). Their adequate size of stores with enough employees also helps in minimizing the extra cost (Sandberg, 2013). The strategy is very simple with the idea of investing less while receiving more. Consequently, the rest of the companies competing with ALDI fails for their pricing range. A great number of customers visit daily and choose to purchase from ALDI for their budget-friendly available items. It becomes easier for the company to stay as the market leader even with a good amount of sales (Witcher & Chau, 2015). Moreover, they are leading in the retail industry with their best quality with low-cost products…………………….
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