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The issue of Customer Relationship Management
Profitability analysis of a company
The issue of Customer Relationship Management
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A. Profitability is one of the main targets that companies have to focus, but it needs a hard effort to achieve. Building customer relationships help the company to be successful.
Customer relationship management: the companies that focus on satisfying their customers and create for them a superior value will build and maintain profitable customer relationships. The satisfied customer is more trusted than others because it awards the company a great share of business
B. company can easily make customers relationships but this will depend on the environment of the target market
The company that has a lot of low margin their customer will search for developing basic relationship with them, on the other hand marketplace with little
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Little profitable
Long term customers Short term customers
C. ALDI is a company that known since 1913, its one of the most companies that make great quality and value. ALDI'S goal is to make customers sure that their products have the highest quality and also have low prices.
ALDI increase and keep its customer loyalty and trust by supporting customers that are already know the brand to shop at ALDI over and over again and also focus on representing ALDI's brands is having the same quality of the other famous brands as Heinz and fairy, to do this ALDI'S made a blind tastes test among a different segments of buyers, these prove that consumer that prefer to buy famous brand would like and prefer to buy ALDI's
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Publics: the public are some groups that have a real or potential interest in or crash on an organization in order to attain its purposes. There are types of publics which are media public, financial public, local public and general public
B. The market strategy that ALDI apply is: competitive pricing is the main strategy for ALDI, also ADLI is capable to offer high quality of the products with low prices so large number of people will buy these products
C. The market research recognized that around of 8o% customers of ALDI have shopped from other supermarkets these customers spent around 20billion per year in the other stores because of this market share have increased from 2.3% to 2.5 % even though this is very little the retail grocery is very large and 0.1% is a very important which give 65million revenue.
Question three
A. The marketing mix is the main tools that help out the company to be successful; there are the four ps of the marketing mix which are:
Product: company made to meet the needs of the target market ALDI offers high quality
The company has established good relationships with most of its customers which has assisted it to create high level of brand and customer loyalty
The low-cost with a focus offer a small focus area of the market its product and service at a low cost due to the economies of scale like ALDI. ALDI focuses on “low-cost, its products have a rapid turnover to keep cost down, and it targets low-income consumers “(Parnell, 2014). Whereas the
... Lastly, the two features of Aldi may not be effective if the customer is looking for specialty items, such as caviar. Aldi does not carry very many specialty items, and if they do, it is not very often, and not in big quantities. In addition, if the customer were looking for items like medicine and clothes, they would be much better off going to Wal-Mart to find these items. Since Aldi is mostly a grocery store, the customer would not find very much of these items at Aldi. Aldi is definitely the place to go, though, if customers are looking for a way to go shopping more quickly and save money while they shop.
One of the benefits from having low prices is that customers tend to migrate to the store that offers the cheaper products. Low prices and happier customers will have a positive impact on ALDI’s sustainability. Competitors that offer substitute goods are a step behind ALDI’s lower prices. However, because other companies such as Wal-Mart and Target, who are large corporations that have their hand in thousands of areas around the country, also sell products that are similar to what ALDI sells, ALDI is still faced with a
Sainsbury’s (2014) states they put their “customers at the heart of everything we do and have invested in our stores, our colleagues and our channels to deliver the best possible shopping experience. Our strong culture and values are part of our identity and integral to our success.” Sainsbury’s brand is established upon providing quality at fair prices, the importance of fresh, healthy, safe and tasty food is put very high at Sainsbury’s. Sainsbury’s also offer a range of up to 30,000 products such as household products, food, grocery, and even its own products.
Big rivals such as Tesco and Morrisons started to compete in price by shrinking packages, introducing cheaper equivalent products, or using cheaper ingredients. Although these strategies cause a sluggish revenue increase, it works on boosting sales and market shares. For example, Tesco’s sale grew by 2.2 percent during July to September. Apart from the traditional retailers, Aldi who applies a similar discounter model is also a strong competitor. In 16th July, the market share of Aldi was 6.2% while Lidl occupied 4.6% of the market (Gale,2016) Compared to Lidl, Aldi has a more dominant market position and better corporate with local farmers. To stand out from these rivals, Lidl still has a long way to go.
Lidl is a food retailer with its roots in the 20th century, being founded in Germany and expanding to the UK in the early 1990s – with amazing growth in the 21st century, a century of change. Since being founded and also in future, revolutionary leadership and exceptionally organised management are grown though in the fundament of Lidl’s success and have encouraged one of Germany’s biggest grocery market share holders to have reached 4.6% of the market share in the UK in September 2016, with some of its competitors being the German food retailer Aldi, but also the British “Big Four” food retailers Tesco, Sainsbury’s, Asda and Morrisons. According to Hett of n-tv (2016), the “German Discounters are conquering foreign countries”,
...nal supermarket retailers will reinvent themselves over a period of time, in order to attract and maintain a loyal customer base. New concepts, neighborhood marketing, and innovation will be the key to success over the next decade.” (Imlay, 2006) What is propose is that a smart mix of products, perhaps catering to demographic tastes and needs, may tempt the shopper not drive out to the big box store, but instead loyal to their local market.
Comparing with the competition the products of Amazon are with high quality and lower price.
1. Introduction Big Food Stores like (Aldi) have a vital role to play in these difficult economic times. It is crucial that leading retailers embrace sustainability in a recession. Of course, they must make cost saving. But they must also continue to develop products and services that create real value for consumer whist not damaging the planet.
The more profitable firms are those that are able to maintain their most valued customers throughout time. To satisfy a customer means to make him faithful and customer satisfaction becomes the index that measures the ability of the firm to produce income for the future.
Relationship marketing is a part of the marketing concept and strongly applies to this article. A company wants to build trust with its customers in order to build customer loyalty and a long-term bond. This gives the customer a value-added feature of doing business with a particular company. In marketing orientated companies, the customer's needs have to be targeted and different social classes or issues need to be taken into account. If a company does not take different sensitive and social groups into account when marketing, then they will not build a feeling of goodwill with the consumers. The consumer will think that the firm cares more about selling its goods than the consumer.
The factors that have a great influence on marketing management, marketers’ business decision-making, and their relationship with customers include macro- and micro-environment, and the latter in turn includes the concept of so-called “4 P’s” (i.e., product, place, promotion, and price). Micro-environment is also referred to as “immediate environment” and stands for the factors that are literally “close” to a certain company: its suppliers, customers, intermediaries (e.g., advertising agencies), and competitors (“Marketing environment,” n.d.) Four P’s are also called “the marketing mix,” and their most widely used interpretation belongs to McCarthy (Blythe, 2008). The marketing mix indicates the four aspects of how to make your business profitable and yourself proficient as a marketing specialist. As Cannon (1992) pointed out, “The marketing mix is the set of controllable variables that the firm can use to influence the buyer’s response.” First, the business person needs to understand what the product of consumer’s desire is. It is obvious that “an undesired product” will not be sold. Producers, however, may invent something that consumers even did not expect to have but really wanted, at least, unconscious...
Ryals, L. (2005). Making Customer Relationship Management Work: The Measurement and Profitable Management of Customer Relationships. Journal of Marketing, 69(4), 252-261. doi:10.1509/jmkg.2005.69.4.252
Customer Relationships is about building a relationship of trust and convenience. A customer wants the company they are working with to be intuitive. To know their needs before they do. They want to feel respected, they need to believe you are honest and have integrity. This relationship breeds comfort and familiarity and causes the consumer to continue to do business with your company. This relationship that is built develops a personal relationship, like a friendship and it is one that the consumer cannot get from the store down the road and it is that personal touch of sincerity, of knowing their needs, of servitude that will turn them into lifelong branded customers.