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Carry out a full strategic analysis and evaluation of Aldi’s current strategic position in the Global Food Retailing market
Current strategy in ALDI
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1. Introduction
ALDi is a global discount retailer supermarket chain based in Germany with its goal ‘To provide our customers with the products they buy regularly and ensure that those products are of the highest possible quality at guaranteed low prices.’
ALDi specializes and sells their own-branded products rather than other branded labels. ALDi also stocks non-food product range such as clothes, electronic products and household goods etc. According to The Telegraphy (2015), reported that there are currently 560 stores in the UK and they are going to expend more 70 new stores in the market to raise its market share within the UK grocery market.
2.1 Effectiveness of ALDi’s Marketing Communication Strategy
In order to evaluate how effective
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3. Marketing Communications mix
3.1. Communications tools and categories of media
ALDi has promoted its brand by deliver the message successfully to achieve an effective communication in different tools to increase brand recognition and awareness.
In terms of paid media, above-the-line promotions of advertising across in the broadcast such as radio and TV commercial in The ‘Like Brands’ campaign, print adverts such as on newspaper and magazine. Leaflets are also distributed within the stores and around customers living areas, outdoors adverts such as billboard, transports (see fig.1), poster and creative ambient has being used to attract audiences’ attention (see fig.2). There are digital advert of banner and click-in search as well.
Fig.1. ALDi “SCAN ON”(2014)
Fig.2. ALDi “Egg Heads” (2010)
Besides, in terms of owned media, ALDi has its own social media in below-the-line promotions such as Facebook, Twitter and mobile apps to announce latest news of offers and sales to encourage two-way communication. YouTube channel to post its TV adverts, event shots and recipes by using their products. ALDi has also become the first official supermarket made sponsorship for the British Olympics team as a functional match to show that ALDi provides healthy and fresh foods for the athletes. Direct marketing of sending direct mail and e-mail marketing to customers existed as
According to Parnell, Porter’s generic strategy typology consists of a “basic economic assumptions about cost versus differentiation, and the whole notion of focus and market orientation but this strategy has some limitations” (2014). This strategy typology helps simplify a complex industry by identifying and emphasizing the key strategic factors. These factors are low-cost with focus, low-cost without focus, differentiation without focus, and differentiation with focus. Low-cost with a focus offers 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 costs down, and it targets low-income consumers “(Parnell, 2014).
... 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.
Because there are many grocery stores that carry similar products that ALDI carries it makes the force strong. However ALDI has a different approach to their daily operation that no other company does.
At present they Coles are regularly checking 8000 product to ensure that they remain in the lowest possible price. At the same time, Wesfarmers must come out with a different segment of own individualistic product lines where they will focus on lowest profit margin. The segment can’t be big at first. But within 10 years, they can have a reasonably strong product line consisting of 1000-2000 products. Remembering the huge market capital they have, it is not a big problem. For any foreign competitors like Aldi, it is difficult to adopt local culture completely. Wesfarmers in that case have a big advantage. Supermarkets must contain products based on the region they operate and local mangers and employee must have some freedom regarding selection of these products. At the same time, they can look out for product of local entrepreneurs representing local culture and it can increase revenue. At the same time, that will be very effective as a patriotic campaign and the image developed by such step will help to further enhance its position as the no 1 conglomerate in
Few companies create such controversy as Walmart has done with its approach to maintaining low costs for everyday items. People either love Walmart because of this approach to keeping prices down or hate it due to the effects it has on the economy. There are a lot of arguments surrounding the minimum wage and employee rights at Walmart. There seems to always be a news article about some employee protest about the wages or how they are treated. Walmart is viewed as an enormous firm that does not take care of its employees because of its minimum wage, treatment of its employees, and how it deals with lawsuits.
Amazon.com creates value for its customers by offering customers broad array of products to select from through their website and ensuring timely delivery of products to exhibit high level of commitment towards their business and customers
12. Raman, K., and Naik, P.A., (2005), Integrated Marketing Communications in Retailing, [online] Available at: http://ramanassoc.com/yahoo_site_admin/assets/docs/IMC_in_Retailing.26100503.pdf, Accessed on: 1st April 2014
Sainsbury’s is in the market of an oligopoly and few big firms run this kind of market. One of the objectives of Sainsbury’s is to gain market share. Sainsbury’s will be looking to beat competitors. To beat competitors Sainsbury’s will need to research and see what business activity they do compare to Sainsbury’s. If they research they can think of way to beat competitors in the market.
For my essay the main focus will be around the growing German supermarket ALDI and the ways in which they use business tools to assist their management strategies and decision making. Therefore I have conducted a SWOT and PESTEL analysis to help support my answer. ALDI are a global business who have over 500 stores in the UK with plans to double this by 2021. They are rapidly growing due to their combination of low prices and convenience so therefore tempting shoppers away from the market leaders such as Tesco and Sainsbury’s. (http://www.theguardian.com/business/2014/sep/11/aldi-extend-uk-hq-70m-pounds).
The different advertisement medias are: · Newspaper advertisements – this type of advertisement contributes to a campaign a clear message whether it is through an image or simple text, it helps promotional campaigns to reach newsreaders depending on the type of newspaper (local, or national). A local newspaper enables the BA to communicate to local residents readers this means in other words through local newspapers this advertisement method helps BA’s promotional campaign to get publicity within the city or local residents. National newspaper like for example The Sun gets the message across to wider readers across UK to see BA’s advertisement. Newspaper media advertisement attracts readers such as older generation because they tend to read more than the younger generation.
Here is discussed about Unilever’s selling strategy, monitoring strategy, advertising medium, selling department, sales force and distribution channel.
Amazon Is the largest internet retail In the united states , we sell electronic , books, produce , Software , and Videos games, supplies, clothing, jewelry, gourmet food, sporting goods, pet supplies, and much more. Are websites serving seven countries; we have 21 fulfillment centers around the globe. What makes Amazon a great success is are tremendous product range, at Amazon we makes every possible attempt to customize the buyer experience. According to more than one million interviews conducted by customer an consumers, Amazon was the most highly regarded brand in the United States last year.
The marketing mix is a term used to describe the four main marketing tools, Price, Product, Promotion and Place (EStartup business blog, 2010). An example of each of the 4P’s are: which products are well received, what prices consumers are willing to pay, what TV programs, newspapers and advertising consumers read and view and which restaurants and businesses are visited (EStartup business blog, 2010).... ... middle of paper ... ... Marketing strategies are the most important part of any business, once the marketing strategy is in place the business will be successful in the future.
The Amazon retailer does not require advertising, it is known even to those who are very far from online shopping. Amazon.com is one of the largest online stores in the world. The company also has branches and warehouses outside the United States, there are in Brazil, Canada, Great Britain, Germany, Japan, France, Italy, Spain, India and China. The company has started a business as a book online store, and then also engaged in sales of other products, including electronics.
Advertising can mean many different things in today’s world. When advertising first was developed it was done by would of mouth and the classic flyer or poster, which is the traditional media. Then it moved up to using broadcast media such as radio to help capture a bigger audience. After that it moved towards the television where an even bigger audience could be reached. Lastly companies started to realize the shear amount of traffic that was generated by the Internet.