customer marketing assignment: aldi supermarkets

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1 Aldi Supermarkets Marketing Report

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This is an assignment produced by a student at the University of East Anglia National Skills Academy, Norfolk, UK. It focuses on the discount supermarket retailer, Aldi, and looks at ways in which the supermarket could increase their market share by a range of innovative marketing tools and strategies Aldi could adopt as part of their long-term customer-related marketing strategy. Complete with SWOT Analysis and reference list.

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Page 1: Customer Marketing Assignment: Aldi Supermarkets

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Aldi Supermarkets Marketing Report

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Contents

Contents and Appendix 2

Executive Summary 3

Audit and explanation of the business and its current customer related marketing strategy. 5

The Four P’s 5

Identifying and recommending new marketing objectives 8

Corporate and Social Responsibility Initiatives 9

Recommending new marketing objectives 10

The Marketing of Halal in the United Kingdom 11

Recommending new marketing objectives 12

Company Rebranding Initiative 12

Recommending new marketing objectives 13

Conclusion 14

SWOT Analysis 16

References 21

Insert 1.0: Marketing and Selling Models 28

Insert 1.1: Needle. D Model 29

Insert 1.2: New Organisational Structure 30

Insert 1.3: Porters Five Forces Model (1980) 31

Insert 1.4: Porters Generic Forces Model 32

Insert 1.5: Ansoff’s Matrix 33

Insert 1.6: Twelve-Month Marketing Plan: Gantt Chart 34

Notes to the Examiner:

All additional information is stored in the Appendix

The word count excludes the following:

I. All references and bibliographies

II. All references to diagrams and tables.

III. All content within tables

IV. Labels and titles of tables and diagrams

V. The Learning Outcomes as Titles

VI. The Contents Page

VII. All content on page 2, 3 & 4

All Harvard referencing in this assignment is from the formatting illustrated in the Anglia Ruskin University document.

http://libweb.anglia.ac.uk/referencing/harvard/htm

I would like all ‘Inserts’, which have been placed within the main assignment to be included in the marking scheme if possible.

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Executive Summary

The UK grocery industry is so large, with the demand of food retail goods being so

sensitive to cross-price elasticity that retailers are constantly striving to explore new and

innovative methods to which they can achieve differential advantage over their

discounter retail competitors. (Mitchell & Kiral, 1998) This report will provide

recommendations on how Aldi can achieve this by diversifying into new markets as well

as retaining loyalty with their existing customer base.

Scope: In recent months the retailer is looking to enhance its image and perception by

developing a stronger focus on quality of its products, as well as its additional in-store

services. (Aldi, 2009) Furthermore, Aldi has expansion plans in opening new stores in higher,

more upmarket locations and to expand its product ranges to attract a higher-earning clientele

(Aldi, 2009). This innovation is supported by Harvey, (2000, pp. 17) who suggests that, being

in a society housing a wide spectrum of income levels, retailers can bring together high-

income and low-income market segments and therefore, can integrate separate ‘segments of

consumer demand’ and forming an internal niche market, whom they can both target with

higher (or branded) and lower priced items (or own-branded items).

This report will analyse their current position within the market in relation to their

competitors, and to conduct a twelve-month marketing plan in order to achieve new

marketing objectives. This will revolve around attracting a new, higher-earning clientele

segment, and therefore, achieving growth to their market share. Aldi supermarkets are a

private company and so the main driver will be financial gain. However, in order to achieve

this, the report will look at the discount market sector in the UK as a whole, and look at the

physiographic aspects of Aldi’s current customer base, their competition and conduct a

SWOT analysis in order to derive the retailers core competencies and to look at new

opportunities for ways in which to exploit these competences and looking at how Aldi could

turn weakness and threats into opportunities and strengths. Furthermore, the report will also

focus on potential asset-lead and market-lead strategies in order to build upon and to

communicate their core competencies through innovative marketing techniques, and, in turn,

to achieve higher customer loyalty. There are two dimensions to the discount retailer market,

and these are hard and soft discount retailing, where the latter’s characteristics focus on the

breath and choice of product, which is categorized as less than 1,000 SKU’s, its positions in

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terms of cost are lower than the soft retailers, and exclusive private labels exceed 90% of the

retailer product portfolio (Colla, 1997; Colla and Dupuis, 1997).

Limitations: there are some limitations at the time of writing this assignment, where is was

proven difficult to obtain primary sources of data from the company itself as Aldi were very

reluctant to disclose their future marketing strategies

Findings:. The supermarket holds the strongest position financially in the grocery discount

sector, retailing both food and on-food products. Their business model allows them to be able

to sell their products to up to 30% cheaper than the major UK retailers (Tesco, Morrisons,

Asda & Sainsburys), through economies of scale (Sloman, 2008), targeting to a clearly

defined market segment who have a larger concern about price, than the quality of the

product itself. The retailer has a key advantage over their competitors in terms of being able

achieve international presence through standardised purchasing of as little as one line per

item, which isn’t tailored to geographical location. (Colla, 2003).

Moreover, Aldi have also diversified into the holiday sector with the aim of providing ‘cash-

strapped’ shoppers with weekend city breaks to European destinations for a fraction of their

competitor’s ‘high-street’ prices. They have been able to sell this service at significantly

lower prices through the use of the same business model they use when purchasing their core

product: purchasing large ‘quantities’ of holiday service provisions, thus again, achieving

economies of scale, and passing their savings onto their customers (Aldi, 2009). Own labelled

products have a higher profit margin compared to branded

items, as they have the costs of national advertising added into

the wholesale price (Colla, 2003). Their travel agent is the

second largest agency in Switzerland (BBC News, Aldi,

2009). Aldi are a limited line grocery discounter housing

approximately 1,000 lines which are tightly controlled, and

the good majority of them being own-branded (Wood &

Pierson, 2006). However, a study carried out by Strategic

Retailing Associates (1990), found that 64% of a survey sample said that customers shopped

elsewhere for branded items ‘which were apparently missed by most customers’. Bellizzi

With this limited assortment,

they can achieve substantial

globalisation and higher

reductions in international

purchasing costs as well

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et al (1981) Cunningham et al (1982) and Hawes et al (1982) state that ‘Several studies have

found that consumers perceive national brands to be superior to store brands and to generic

grocery items on attributes, such as overall quality, taste, aroma, and reliability’, However,

Store brands do provide a platform for retailers to allow them to improve margins (Ailawadi,

2001). This is certainly a strength or Aldi who can attain cost leadership status (‘Cost

Leadership’

Segment: Porters Generic Forces: Insert 1.4)

An audit and explanation of the business and its current customer

related marketing strategy.

Audit and explanation of the Business

The Company

Aldi is a well known supermarket discounter brand, is the 9th

largest grocery retailer in

Europe by sales volume and currently holds 1% of the UK market share (TNS Global, 2009).

This has been achieved by their simple business model: reducing company operational

expenditure: this means purchasing only one line per item from the supplier, thus limiting

choice for the consumer however, their transportation costs are kept to a minimum by

delivering their stock straight from the warehouse to the store being merchandised on the

pallets they arrived in. With this limited assortment, they can achieve substantial

globalisation and higher reductions in international purchasing costs (Colla, 2003). Also, their

basic store architectural and interior designs involve using inexpensive signage and

employing a ‘no frills’ design (Aldi, 2009). They stock mostly non-branded ranges which are

seen as the key differentiator between competitors (Burt & Sparkes, 2003).

The Current customer related Marketing Strategy

Aldi are focused to targeting a specific audience where customers are more concerned about

the price of the product than the quality product itself. They have achieved this by developing

an understanding that customers will chose carefully before they decide to purchase a product

or use a service (Dibb, 2001).

Product

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The product ranges Aldi mainly specialise in are their own-branded labels, which are cheaper

than branded label because Aldi control their costs and production process. Aldi also stock

non-food items such as toilets, scuba diving equipment and musical instruments.

The Core Product: this is the perceived core benefit or service. The core product in this

case is to be able to make use of a service which sells convenience goods (Dibb, 2001)

The Actual Product: concerns the additional features of that product or service, such as

durability, branding, packaging and design (Dibb, 201)

Augmented Product: these concern aspects of the product such as customer service,

warranty, delivery and credit. In the case of Aldi, warranty may only apply to non-food

items, where as with customer service, customer care extend to their food items as well

(Dibb, 2001).

Price

The process of distribution reflects the retailers pricing strategy used for being able to sell

their products at a lower price, and this comes back to their business model. The retailer,

using its high bargaining power over their suppliers, can buy large quantities of stock to

service all their stores across the country. This then leads to Aldi achieving economies of

scale and potential Cost Leadership status (See Porters Generic Forces: Insert 1.4). Another

aid to the retailer keeping prices low their purchasing of one item per line, limiting the

amount of choice for the customer. Aldi say that their prices are up to 30% lower and use a

combination of pricing strategies such as market penetrating pricing, physiological pricing

and promotional pricing.

Place

The ‘place’ component of the marketing mix concerns the physical location as well as

distribution channels, communication channels and opening hours. Aldi has a physical

presence in communities around the UK as well as Europe in the form of their stores as

physical buildings. However, the retailer also has an online presence in the form of a

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marketing channel, where customers can find their nearest store, find recopies, and obtain

information on products, services and contact details.

Packaging

Aldi use their own packaging, as the bulk of their products are packed exclusively for the

retailer. The packaging used at Aldi is similar to the packaging used on branded items (Wood

& Person, 2006). Own packaged products accounts for 70% of their portfolio and is seen as a

key component for retail differentiation (Hogarth-Scott & Rice: 1994)

People

Operational staff performs the tasks as well as sell the

product. This is why employee selection, training and

development are crucial aspects to give the perception

that customers are in the hands of professionals who

are friendly, helpful and efficient. The people act as

evidence of a service being present; as the service

itself is intangible (it isn’t a physical object) and play

the crucial role of being the ’face’ of the business and have the power to build up a

relationship with that customer or break it down. However, it isn’t just the people at the

customer-interface end; there are a range of parties all of whom work towards the one aim of

providing a shopping experience, and balancing this with keeping their costs down and at the

same time achieving financial gain. Supermarkets have the simple task of buying things and

selling them. And it is the retailers job to ensure that quality and safety are maintained in all

food products and ensuring that their customers are satisfied with their purchases. This will

happen through market research and may stem from innovative new products or revamping

old ones to stimulate demand (Sloman, 2008). It is the process in between the buying and the

selling, which is where the bulk of the people are situated such as buyers, distributers,

packers, manufacturers and merchandisers. Moreover, once the product has been purchased,

there are also after sales services in the form of customer service operators, which again are

evidence of a service, present (Dibb 2001).

Physical evidence/ambience

This concerns the environment: the layout, decor and lighting, with the ambience, or feel of

the store are very much a part of the product offer (Dibb, 2008). Aldi employs a ‘no frills’

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concept with regards to the interior designing of all their stores. As part of their strategy to

keep their operational costs down, this is extended to their signage they use for product

location and for advertising (Aldi, 2009).

Process

The main focus is to deliver products to customers at

lower prices, which is achieved through their business

model of purchasing higher volumes of product with no

manufactures brand name nor intellectual property

physically present on any packaging. Moreover, these

producers do not pay for the communications or the

marketing of their products and are able to reduce their

manufacturing overheads. They can operate on margins

which are lower than those of branded manufactures due to their intensive unitisation of

production equipment. This is offset by their higher investment turnover both with the

manufacturer and Aldi, which keeps both their profitability satisfactory (Colla, 2003).

Furthermore, with the balance of power tilted towards the retailer, they determine their

product ranges and are able to quickly and cheaply switch suppliers based on the criterion set

by Aldi (Sloman, 2008: Colla, 2003). Through vertical integration they can eliminate

additional costs associated with dealing with external suppliers and producers and also erect

barriers to entry for competitors (Sloman, 2008) (See Porters Five Forced Model: Insert

1.3). Logistics has become a key element in ensuring food quality both within fresh and

chilled product ranges (Harvey, 2000). Another customer-focused operation is their stores

only being open during peak trading hours, therefore, costs saved are saved. Each region

consists of up to 55 stores and a warehouse which aids fresh distribution of their products

(Aldi, 2009).

Identifying and recommending new marketing objectives.

Summary

Harvey (2000) suggests that competition is not to be judged in terms of price and cost but by

the ability for a firm’s capacity to innovate over time, thus leading to higher, long-term gains

in quality, price and convenience.

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Corporate and Social Responsibility Initiative

Jones and Comfort (2006) state that healthy eating has

assumed an increasing importance on the political agenda

within the UK; the Government sees the food industry as

having a corporate and social responsibility to promote

healthy eating. Organisations in general play an

increasingly important role in the lives of society,

(Mullins, 2007). Lambin (1997) proposed that ‘In recent

years, there has been increased pressure on many

companies to acknowledge their responsibility to society,

and act in a way which benefits society overall’ The

Department of Health (2004) states that the food industry

has a major impact on what people eat and that 9 out of

ten people buy their food at a supermarket versus

independent shops. What constitutes as ‘healthy eating’

are based on personal beliefs, cultures, aspirations and advances in healthy eating ‘practices’

which are constantly evolving with advances in scientific research (Jones & Comfort: 2006).

Although many Britons are attempting to switch to healthier lifestyles and therefore, change

their buying habits, there is also a strong counterbalance in the upward surge in convenience

foods. (Key Note Ltd: 2007).

Corporate and Social Responsibility, according to Mullins (2007) is:

‘The comprehensive approach organisations take to meet or exceed the expectations of

stakeholders beyond such measures as revenue, profit and legal obligations. It covers

community, investment, human rights and employee relations, environmental practices and

ethical conduct’ (Mullins, 2007)

It has been argued by experts that many neighbourhoods have poor access to shops who sell

quality and ‘wholesome’ foods at competitive prices (Jones & Comfort, 2006). Riches (1997)

states that there is evidence to suggest that low income families find it difficult to maintain a

....healthy eating has assumed an

increasing importance on the

political agenda within the UK

The bus ness case for CSR is seen to

focus on a wide range of potential

benefits. These include improved financial performance, reduced

operating costs, long-term

sustainability for companies and their employees,

Increased staff commitment and

involvement, long term return on investments, enhanced capacity to

innovate, good relations with

government and communities, better risk and crisis management,

enhanced brand value and reputation

and the development of closer links with customers and greater

awareness of their needs.

Commercially and academically these last two claimed benefits are

clearly rooted in marketing and there

is a growing, but still relatively undeveloped literature on the links

between marketing and

CSR. (Jones and Comfort, 2005)

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Riches (1997) states that there is

evidence to suggest that low income

families find it difficult to maintain a

balanced diet party due to the lack of

money to purchase healthy foods....

balanced diet, partly due to the lack of money to purchase

healthy foods. The Department of Health (2005) states that

obesity is becoming increasingly the norm amongst children,

who consume too much saturated fats and sugar’s and too few portions of

fruit and vegetables. Another factor that has been sought as a political trend is that both

manufacturer and retailer introducing less salt and sugar in their food products whilst others

have taken further steps to highlight the healthy qualities of their brands (Key Note Ltd, 2007

pp. 56). Retailers who have launched aims of improving health via healthy eating initiatives

have earned the reputation in the past, from stakeholder parties, as being socially responsible

(Piacentini, MacFadyen & Eadie, 2000, pp. 462). Therefore, the key is corporate

communications in marketing: this is highlighted by the numerous examples of companies

who have sound socially responsible practices; however, they do not have that reputation they

should have. It appears that some companies are not communicating enough to the public

about their CSR Strategies (Wilkinson and Balmer, 1996). Further reading supports this with

studies carried out by Waddock and Graves (1997), who revealed that social performance,

leads to financial performance, however, it was Balabanis et al (1998) who suggested that

disclosure of such CSR activities was key to the social performance-financial performance

correlation. According to Ansoffs Matrix, this is an existing market with existing products

which have been revamped to enhance health

standards, therefore, is a low risk strategy (See

Ansoff’s Matrix (Insert 1.5)). The marketing and

selling process to stakeholders can also be seen in

the Marketing and Selling Models (Insert 1.0) from

Dibb (2001).

Recommending new marketing objectives

Aldi forms a strategic alliance with the Department

of Health, (which can be identified as a stakeholder)

both acting in the interests of the community’s health, well-being and balanced lifestyles by

promoting foods and beverages which are linked to healthy eating (‘Differentiation’

Segment: Porters Generic Forces: Insert 1.4). This would be extremely time consuming

Product Stewardship

Understanding, controlling, and

communicating a product’s environmental,

health, and safety related effects throughout

its life cycle, from production (or extraction)

to final disposal or reuse (BizEd, 2009)

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and costly to imitate for competitors to achieve (See Porters Five Forces: Insert 1.3) As the

retailer is working closely with the Department of Health, Aldi can change their marketing

strategies as new scientific advances are made through research and development. Aldi will

need to work with their suppliers, producers and manufactures in producing nutritious foods

which provide a better quality of life to all their customers and not just to the customers who

can afford to purchase such foods. The retailer will continue to use own-labelled goods as

these provide a better margin in their pricing, compared to branded items, which include the

cost of national advertising (Kent, 2003). Methods in which to communicate this marketing

imitative to their customers are through in-store advertising, through company annual reports,

extensive television advertising, incorporating the new branding scheme, and full page

adverts in national newspapers, all advertising medias of which have been used extensively in

the past. In order for the CSR strategy to remain relevant and effective, the retailer needs to

constantly engage with their stakeholders and managing conflicts of interest. Firms who

focus on moral and social issues can adopt a ‘first mover’ advantage by prompt response to

stakeholder concerns (Schlegelmilch, 1998; Pratley, 1995; Laczniak and Murphy, 1993).

The Marketing and Retailing of Halal Meat (HM) in the UK

There has been a rapid growth in the UK in shops and business catering to the Muslim

community (who can be identified as another stakeholder) by offering products and services

which are produced, or to be used/consumed according to the Muslim faith (for instance,

HSBC PLC retail banking offers an Anamah/Shariah Current Account,

aimed at providing financial services to meet the needs of the

Muslim Community) (HSBC Plc, 2009). The increasing Muslim

population across Europe and the UK and has encouraged many

businesses, and certainly retailers, to invest in this growing market

(Ahmed, 2008) (‘Focus’ Segment: Porters Generic Forces: Insert

1.4). The Muslim population in the UK is 5% but consumes 20% of

the meat sourced in the UK (UK Government Statistics, 2006:

Scottish Executive, 2006: NISRA, 2006, BBC, 2005). Jackson

(2001) states that farmers are also being urged to diversity into the

HM market. However, the Muslim Council has warned that 90% of meat labelled as Halal

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...an important contribution

to store image are elements

such as decorative features,

colours displays stimulations

of senses such as smells...

has been sold illegally, with the animal not being slaughtered to the Muslim Faith and is the

third largest illegal trade in the UK (Pointing & Tienaz, 2004).

This violates beliefs, abuses trust, is a serious concern to public

health and exerts cruelty to animals (Ahmed, 2008). Therefore,

systems which provide tractability to confirm the authenticity of

meat sold in Aldi, from source to store, will need to be

implemented at the customer inter-face level. The National Halal

Foods Group are the main regulators for Halal based products and

currently operates 10 Halal butchery outlets in Asda and two outlets in Tesco

(Gale Cengage Learning, 2009)

Recommending new marketing objectives

Again, Aldi forms a strategic alliance with the National Halal Foods Group and the Muslim

Councils in order to provide certification to the core product and to regulate and integrate

‘traceability to source’ practices of all products through product stewardship methods. This

means that Aldi will be able to develop trust and loyalty between the Muslim communities.

Stores can either house a separate Halal butcher in-store where fresh cuts of meat can be

prepared: in this instance extensive training will need to be carried out with qualified Halal

butchers, or Aldi could sell pre-pack portions of Halal meat in store. This will depend on

where each store in located in relation to Muslims communities and so sufficient demand can

be fulfilled. This can be seen as a high risk strategy according to Ansoff’s matrix because it is

a new market to Aldi, promoting new products (See Ansoff’s Matrix (Insert 1.5))

Company Rebranding Initiative A positive and successful brand is defined as a name or

symbol, or a combination of the two. It identifies a product or service of an organisation as

having a sustainable differential advantage (Schmidtt, 1999a) At present, all Aldi stores

employ a ‘no frills’ design in terms of their signage, interior design and in-store advertising

with little in-store branding (BBC News, Aldi. 2009). However, today, customers are

increasingly aiming to seek an experience which goes beyond the product variety and pricing

strategies, there are further attributes which create a store image and important contributions

are elements such as decorative features, colours

displays stimulations of senses such as smells

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(Bitner, 1990: Sivadas & Baker-Prewitt, 2000). Babin & Darden (1996) state that, by habit,

the shopper’s perception on quality of the products can be linked to the atmosphere

(patronage) of the store itself (Darley & Jen-Su, 1993: Jacoby & Mazursky, 1985: Arnold et

al. 1983: Craig et al, 1984: Koelemeijer and Oppewal, 1999; Louviere & Gaeth, 1987).

Further reading suggests that, according to Lingquist (1974), Marks (1976) and James et al

(1976), store image construction and features have made its way into retail and marketing

literature for over three decades. The key element Aldi must address is to tackle their current

perception of the public that the retailer is downmarket (Verdict, 2009). Morrisons

Supermarkets have achieved this on a large scale in rebranding the company through

‘refreshening’ their brand and revamping store interior design to give their customers a

modern shopping experience through their Optimisation Plan. Furthermore all of their staff

were fitted with new uniforms which carried their new brand, alongside their new own-

labelled packaging and in-store signage (Morrisons Supermarkets, 2009).

Recommending new marketing objectives

Rebranding the company will provide a ‘fresh and invigorating’ feel to the business.

Rebranding their stores with a new logo and signage will give their customers a new

shopping experience. Because Aldi is a multi-national retailer, in-store food signage is of a

simple design consisting of the new logo and an illustration of the food item which the sign is

designating within the store. Not only will this ‘imprint’ the new logo into customer’s minds,

but it will also eliminate the issue of multi-language signage having to be produced over

different countries.

Providing a detailed marketing plan for the business to undertake, for

the next 12 months, to achieve the set customer related objectives.

(See Insert 1.6)

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Conclusion

Incorporating all the CSR imitative, illustrated in this report, the retailer will form a mission

statement to further develop trust and loyalty from their customers and to be advertised in all

company literature (i.e. annual reports) in-store advertising, television advertising and on all

own-labelled packaging. It will illustrate the following:

‘Whilst enjoying a quality, a mouth-watering and delicious product with a tailored in-store

service to match, Aldi Supermarkets aims to work closely with the Department of Health and

the British Nutrition Foundation (BNF) to become the leading providers of quality and

wholesome foods to you, your families, and for all our communities, every day, at prices

everyone will love, throughout the year!’

Comparing all these factors to the four major retailers in the UK we can see there is a large

contrast between the values and cultures between the two sectors. Firstly, whilst Aldi stock

around 1,000 product lines in their stores, the majority of retailers (which have a combined

market share of over 75%) have over 30,000 product lines. This gives the customer a wider

choice when choosing a product, however, leading to their products being more expensive.

They also focus heavily on store design and layout and have fresh food counters, providing

their own in-store fishmongers, bakery, butchery and delicatessens, with their adverting

budgets and strategies being on a much larger scale with a wider range of advertising media

and an emphasis on all their staff being trained in fish, butchery and other trades. This is a

result of these retailers investing heavily in training and development of all their staff, thus

leading to higher investment costs. This is because retailers aim to enhance the overall

product for their shoppers by selecting and investing in their employees to enhance job

performance: they may have to perform certain tasks (i.e. preparing a food item to a

customer’s request) as well as selling the product.

Supermarkets have also, in recent years, diversified from grocery retailers and have gone

further by expanding their product portfolio to sell intangible products and services. (I.e.

Tesco’s now sell insurance, store credit, and launching their mobile phone network).

Morrison’s also have pharmacies in some of their stores and most stores across the sector

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have cafes too. However, a comparison that Aldi has with the four major retailers are that

most of ‘majors’ have a value and own branded range alongside the branded ranges they

stock, again offering the customer more choice, with their focus on product quality but

helping their customers save money whilst doing so. They have adopted the Aldi marketing

strategy where customers can pick up an own-branded (Morrison’s Value range) food item

and saving money, but not compromising on the quality and health standards that product

gives.

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The SWOT Analysis Insert 1.7

Strengths

Aldi is the leader in the discount grocery market sector and continues to hold this position

today. This could be turned into an opportunity for exploit their market position and to build

upon this advantage through innovative marketing and long-term strategies in order to

position themselves for growth. During the recession the discounter has seen a surge of sales

as people are switching retailer to take advantage of the better prices Aldi has t offer relative

to the major retailers on the UK. Another core competency they have is being able to keep

their retail prices low through a business model widely used in other discount supermarkets,

through purchasing bulk and passing the savings onto those customers. These innovations

have not only been introduced at the point of sales, which are easier to imitate by

competitors, but through vertical integration, which is harder for competitor to imitate due to

the barrier to entry being erected (Colla, 2003) and in with purchasing: this is tailored more

closely to product line than to the size of the retailer itself (Colla, 2003).

Another strength they have built upon was their diversification into the holiday market

whereby Aldi now offers holidays as weekend breaks to certain destinations around Europe

and has become the second largest travel agency in Switzerland.

The hard discount retailer has had an enormous amount of experience in trading in territories

outside its home country (Hogarth-Scott & Rice: 1994, pp 20), with help from own-label

brand management and buyer-supplier relationship management and purchasing power as an

asset-lead, core competence factor (Colla, 2003) and their business model consists of large

purchasing of non-diversified and specialised product ranges. This is a leading characteristic

if the hard discount retailer and this leads to Aldi being able to retail their own-branded

portfolio at up to 30% less than the supermarket and hypermarket prices.

With this limited assortment, they can achieve substantial globalisation and higher reductions

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in international purchasing costs.

Aldi is the leading discount retailer in terms of market share in Germany, its home country,

but also the retailer has achieve aggressive internalisation with an equal amount of market

share with their rate of expansion being higher in terms of number of stores within those

penetrated countries than then penetration into new countries. This strength has been built

upon, stemming from the fact that hard discounters are at a higher risk of penetrating into

new countries due to their standardised and limited product range which isn’t tailored to local

and cultural differences. Colla (2003) also goes on to say that the countries in which Aldi

have penetrated present opportunities for higher purchasing power.

UK supermarkets operate in a market which focuses on price choice, quality and

convenience, which is a contrast to the discount retailers. However, because it could be

argues that the superstore and the discount retailer (Aldi) are not in direct competition with

one another, because of the diverse target markets they cater to, competition is only restricted

to other discount retailers whose market shares will be similar (Harvey, 2000)

Weaknesses

The retailers opening hours and operational periods are somewhat different to those of their

major rivals. The discount retailer does not open on Sundays or Bank Holidays and this could

be an opportunity to look into. During these holidays people in certain industries are not

likely to be working these days, therefore, they will with be at home, or visiting friends and

relatives and so may visit a supermarket (preferably their nearest one) to either carry out their

weekly shop or to go and purchase items such as presents and food or beverage gifts whilst

travelling to visit friends of relatives.

Colla (1997) states that ‘they are present in most countries, and with a larger proportion of

their market share, and their rate of international expansion over the past few years has been

higher in terms of number of stores than penetration into new countries’ This goes hand-in-

hand with Colla (1997), further stating that ‘countries that are culturally different and

geographically distant from Germany and where the risks for new players are higher - such

Page 18: Customer Marketing Assignment: Aldi Supermarkets

18

as South American and Asian countries - it is the discount retailers in the third group,

benefiting from the experience of an already established strong international group, who

remains favoured’ What Colla, 1997, is saying is that if Aldi want to expand into

international territories further away from their home country, this could be detrimental to the

business as their product range isn’t fluid to local buying habits.

Aldi exclusively stock their own-branded items, which stemmed from their experience on

brand-label management, but this has deterred customers from shopping at Aldi saying that

prefer purchasing branded and well-known items they ‘know and love’.

Opportunities

With the ever-increasing Muslim population in the UK, many businesses are finding it

financially beneficial to cater for this segment by provision of products and services. A large

area which is being investigated is the marketing of Halal, a Muslim meat, in the UK. There

are some controversies between parties between buying Halal from a national chain

supermarket and saying loyal to their local butchers with the majority of the Muslin

community saying that they would prefer to say at their local butcher because of the personal

service they receive, as well as the provision of coffee and newspapers’ whilst waiting for

their meat and provisions to be prepared. Aldi could incorporate at ‘Morrison’s approach’ and

create a ‘Market Street’ approach whereby Muslim butchers could be produced in their stores

in high Muslim populated communities, as well as trained Muslim butchers and

implementing systems whereby both butcher and customer can track the source of the meat

back to the slaughterhouse in order to confirm its authenticity through Product Stewardship

means, as part of their Corporate and Social Responsibility initiatives. However, because the

demographic population of the Muslim population varies by location, the most cost effective

practice of implementing this strategy would be to only carry this out in stores which are

situations in high Muslin populations and goes against the business model of high purchasing

volumes and may not be able t achieve economies of scale and therefore being able to charge

lower price if sufficient demand cannot be fulfilled. This will need further investigation.

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A large political factor which has been the major influence of many retailer marketing

strategies is the trend on the nation becomes more and more health conscious over the years.

This could be due to more media coverage on diet and health issues as well as a Sky

dedication a section to dieting and ‘looking good’. This, coupled with the governments

intervention of tackling obesity in the UK (23% of people in the UK are classed as obese),

could open a door of opportunity of incorporating a pledge of helping their customers stay

healthy and life balanced lifestyles by communication the benefits of eating healthily with

adapting the food in which they offer to recommended daily allowances on each item of food.

Many major retailers have started doing this. Morrison’s have launched an ‘Eat Smart;’

range, whereby all food within this range have a reduce sale content. In addition, customer

are becoming more concerned about what is in their foods in terms of nutrients and minerals,

and so many retailer have launched simple labelling systems on all their packaging to tell

customers what exactly is in their food. According to statistics, people on lower incomes find

it difficult to purchase foods which sustain balanced lifestyles because of the higher prices of

these foods that those which have fewer health benefits. The key here is for Aldi to help their

customers save money and having access to health foods such as fresh fruit and vegetables.

Because of the surging demand for healthier food over the years Aldi could benefit

significantly from thus niche market by providing foods to improve the health of their

customers as well as further aiding them to eat healthily through education and Corporate and

Social Responsibility initiatives.

Redeveloping their brand in terms of their logo would be a good way to re-establish itself in

the market and to overcome that perception that Aldi is a ‘down-market’ supermarket. A

brand is a way to communicate to its customers regarding what the organisation is all about

and it is used to create an identity unique to the organisation relative to its competitors.

Furthermore, a brand a create a perceptions in the mind of the customer as well as

associations with that brand name in order to establish a more superior loyalty base. A new

logo with green-shaded colours and its simple design could be perceived as the green for

selling fresh, healthy, produce in a modern and professional shopping environment. For

branded products Aldi could incorporate a brand strategy whereby the company name could

be combined with the individual brand name: their product have their own branded names,

Page 20: Customer Marketing Assignment: Aldi Supermarkets

20

but also with the company logo alongside those brand names on the packaging of all their

products as well as the blanket family name approach where Aldi just simple puts its

corporate identity on all their products regardless whether they are branded or own labelled

products.

The reputation of the brand can be enhanced by selling the same brand and/or product if it

different outlets and not just limited to lower purchasing costs (Colla, 2003)

Threats

Competition will always be a threat to any business. Especially where the grocery sector is

grown so large over the years and has saturated almost every part of the country that retailer

are finding it more and more difficult to differentiate themselves away from their

competitors. In addition, because customers are comparing prices of the ‘shopping baskets’

with other retailers cross-price elasticity has become the forefront of price-setting. Further

threats could be random shocks and events that may occur that could affect the crop or cattle

yields, grocery inflation and commodity shortages, which will raise the price and therefore

will raise the retail prices. This will especially be the case if the Pound in the foreign

exchange market was falling in value and therefore would make imported goods cheaper to

buy relative to domestically produce goods.

Regarding the retailer moving into the holiday market, there will be a fell in the demand for

domestic holidays in the Euro zone because of the weak pound in 2009, which may mean that

people will be looking outside of Europe for their holiday. This could be turned into an

opportunity in that, if Aldi do find that there is a large demand for holidays outside or

Europe, the retailer could transfer all their efforts in promoting and selling holiday outside of

Europe as a competitive strategy. Furthermore, international sourcing of food items could

weaken profits if the British exchange rate falls against rates overseas.

Aldi has little expertise in fresh produce is to its less diverse range. Fresh produce is

predominately exploited by retailers belonging to groups with low foreign diversification and

those who have highly diversified groups abroad. The threat here is that Aldi could lose out

Page 21: Customer Marketing Assignment: Aldi Supermarkets

21

on an independent market to their competitors. This especially would be the case if the

retailer wishes to expand its market segmentation to include target markets with higher

incomes.

According to Harvey (2000) there is immense competition between branded manufacturers

and non-branded manufacturers (own-labelled), stating that manufacturers of branded product

have companied that the threat posed by own-label producers has dampened down their

investment and innovation and have struggled to produce under the UK own-label or they

risk losing shelf space to own-label manufacturers. Around 70% of the products Aldi sells are

own-labelled products, therefore they could become the focus of public and trade cutinisation

(Hogarth-Scott & Rice; 1994).

References: please note that all referencing was carried out to the formatting in the Anglia

Ruskin University ‘Library Guide to the Harvard Style of Referencing’

Available at: http://libweb.anglia.ac.uk/referencing/files/Harvard_referencing.pdf

Jones. P & Comfort.D .,2006. Healthy Eating and the UK’s major food retailers: a case study

into corporate and social responsibility. British Food Journal, [Online]. 108 (10). Available

at: http:// www.emraldinsight.com/0007-070x.htm/

[Accessed 26 November 2009]

Key Note., 2007. Market Assessment 2007. Supermarket own Labels, [Online]

(Issue Number and Date Unknown).

Available at: http://www.keynote.co.uk/

[Accessed 24 November 2009]

BBC News, 2008. Pinch helps discount supermarkets. BBC News, [Online] 20 November.

Available at: http://www.bbc.co.uk.news/

[Accessed 22 September 2009]

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Ahmed, A., 2008.British Food Journal. The Marketing of Halal Meat in the United

Kingdom; Supermarkets versus Local Shops, [Online]., 110 (7), pp. 655-670. Available at:

http://www.emraldinsight/com/0007-070X.htm/

[Accessed: 16 September 2009]

Sandra Hogarth-Scott & Steven P. Rice., 1994. The International Journal of Retail and

Distribution Management. The New Food Discounters: Are they a Threat to the Major

Multiples?, [Online]., 22 (1), pp. 20-28. Available at: http://www.emraldinsight.com/

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Harvey, M., 2008. Supply Chain Management: An International Journal. Innovation and

Competition in UK Supermarkets, [Online]., 5 (1), pp 15-21. Availbale at:

http://www.emrald-library.com/

[Accessed 16 September 2009]

Wilkinson. A, and Balmer, J.M.T., 1996. Corporate and Generic identities: lessons from the

co-operative bank. International Journal of Bank Marketing, 14 (4), pp. 22-35.

Waddock, S. and Graves, S., 1997. The corporate social performance-financial performance

link. Strategic Management Journal, 18 (4), pp. 303-19.

Balabanis, G, Phillips, H.C. and Lyall, J., 1998. Corporate social responsibility and economic

performance in the top British companies: are they linked? European Business Review, 98

(1), pp. 25-44.

Schelgelmilch, D., 1998. Marketing Ethics. An international Perspective, Thopmson

International Press, London.

Laczniak, G.R. and Murphy, P.E., 1993. Ethical marketing decisions- the higher road, Allyn

& Bacon, Boston, MA

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Lambin, J.J., 1997. Strategic Marketing Management, [Online]., 28 (11), pp. 459-469

Available at: http://www.emrald-library.com/

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Findlay, A. & Sparks, L., 2008. International Journal of Retail and Distribution

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Pointing, J and Tienaz, Y., 2004. Halal meat and food crime in the UK. Proceedings of

International Halal Food Seminar, Islamic University of Malaysia, [Online] Available at:

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Babin, B.J. and Darden, W.R., 1996. Good and Bad Shopping Vibes: spending and patronage

satisfaction. Journal of Business Research, 35 (3), pp. 201-206.

Craig, S., Ghosh, A., and McLafferty, S., 1984. Models of Retail Location Process: a review.

Journal of Retailing, 60 (1), pp. 5-36.

Darley, W.K. and Jen-Su, L., 1993. Store Choice for pre-owned behaviour. Journal of

Business Research, 27 (1), pp. 17-31.

Jacoby, J., and Mazursky, D., 1985. The impact of linking brand and retailer images on

perceptions of quality, in Jaboby, J and Mazursky, D. (Eds). Perceived Quality: How

Consumers Views New Stores and Merchandise, D.C. Heath and Company, Lexington, MA,

pp. 155-159.

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James, D.L., Durand, R.M. and Dreves, R.A., 1976. The use of multi-attributes model in a

store image study. Journal of Retailing, 52, pp. 32-32.

Koelemeijer, K and Oppewal, H., 1999. Assessing the effects of assortment and ambience: a

choice experimental approach. Journal of Retailing, 75 (3), pp. 319-45.

Lindquist, J.D., 1974. Meaning of image Q survey of empirical and hypothetical evidence.

Journal of Retailing, 50 (4), pp. 29-38.

Marks, R.B., 1976. Operationalising the concept of store image. Journal of Retailing, 52, pp.

25-48.

Colle, E and Dupuis., 1997. Le defi mondial do bas prix. Publiunion, Paris.

Burt, S and Sparks, L., 1994. Structural Change in Grocery Retailing: a discount

reorientation. International Review of Retail Distribution and Consumer Research, 4 (2), pp.

195-217

Burt, S and Sparks, L.,1995. Understanding the arrival of limited line discount stores in

Britain. European Management Journal, 31 (1), pp. 110-19.

Mullins, L.,2007. Management and Organisational Behaviour. 8th

ed. Harlow: Pearson

Education Ltd.

Colla, E., 2003. International Journal of Retail and Distribution Management. International

expansion and strategies of discount grocery retailers: the winning models, [Online], 31 (1),

pp 55-66. Available at http://www.emraldinsight.com/0959-0552.htm

[Accessed 16 September 2009]

Aldi, 2009. Welcome to Aldi.[Online]

Available at: http://www.aldi.co.uk/

[Accessed 02 December 2009]

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HSBC Plc, 2009. Amanah Bank Account. [Online]

Available at: http://www.hsbc.co.uk/1/2/personal/travel-international/hsbc-amanah/amanah-

bank-account;jsessionid=0000dyU90dTNy9lPgP1Z0hdeOgw:14f64qmvd

[Accessed 17 December 2009]

Muslim Council of Britain, 2002. Halal Meat. Muslim Council of Britain [Online], 17

December 2009.

Available at http://www.muslimcouncil.co.uk/

[Accessed 18 January 2005]

UK Government Statistics, 2006. Religious populations. UK Government Statistics [Online]

17 December 2009.

Available at http://www.statistics.gov.uk/cci/nugget/asp?id=954/

[Accessed 30 April 2006]

BBC Online, 2006. Farmers urged to go Halal. BBC Online. [Online] 12 December 2009

Available at http://news.bbc.co.uk/1/hi/uk/2163101.stm/

[Accessed 16 January 2005]

Jackson, M.,2001. Demand for Halal. [Online] 12 December 2009. Available at

http://www.bbc.co.uk/muslimfest.

[Accessed: 18 January 2005]

Wood. L & Pierson. B., 2006. International Journal of Retail and Distribution Management.

The brand description of Sainsbury and Aldi: price and quality positioning, [Online], 34 (12),

pp 904-917. Available at: http://www.emraldinsight.com/0959-0552.htm

[Accessed 16 September 2009]

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V.W Mitchell & R.H. Kiral., 1998. British Food Journal, Primary and Secondary store-loyal

customer perceptions of grocery retailers, [Online], 100 (7), pp. 312-319. Available at:

http://www.emraldinsight.com/

[Accessed 17 November 2009]

Teodoridis. P & Chatzipanagiotou. K., 2009. Store image attribute and customer satisfaction

across different customers profiles within the supermarket sector. European Journal of

Marketing, [Online], 43 (5/6). Available at http://www.emraldinsight.com/0309-0566/

[Accessed 18 November 2009]

Kent, T., 2003. 2D3D: Management and design perspectives in retail branding. International

Journal of Retail & Distribution Management, [Online]. 31 (3), pp. 131-142.

Available at: http://www.emraldinsight.com/0959-0552.htm

[Accessed 16 December 2009]

Schmitt, B.H., 1999. Experimental Marketing: a new framework for design and

communications. Design Management Journal, 10 (2), pp. 10-16

Riches, G., 1997. Hunger, food security and welfare policies: issues and debates in First

World societies. Proceedings of Nutritional Societies, 56 (1), pp. 63-74

Louviere, J.J. & Gaeth GJ., 1987. Decomposing the determinants of retail facility choice

using the method of hierarchal information integration: a supermarket illustration. Journal of

Retailing, 63, pp. 25-48.

Wm Morrison’s Supermarkets Plc, 2009, Annual and Financial Statements 2009. [Online]

Available at http://www.morrisons.co.uk/

[Accessed 16th

September 2009]

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Piacentini. M, MacFadyen. L & Eadie. D., 2000. International Journal of Retail &

Distribution Management. Corporate and Social Responsibility on food retailing, [Online].

28 (11), pp. 459-469. Available at: http://www.emraldlibrary.com/

[Accessed 18 December 2009]

Dibb, S. Simkin, L., 2001. The Marketing Casebook: Cases and Concepts. 2nd

ed. London:

Thompson

Sloman, J., 2008. Economics and Business Environment. 2nd

ed. Harlow: Pearson Education

Limited)

Page 28: Customer Marketing Assignment: Aldi Supermarkets

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Production Selling Consumption

Profits throught

volume sales

Customer need

evaluaiton

Integrated Market

Effort

Customer

Satisfaction

Profits throgu

satisfied

customers

Feedback

Feedback

Feedback

Selling

Marketing

Dibb, S. Simkin, L., 2001. The Marketing Casebook: Cases and

Concepts. 2nd

ed. London: Thompson

(Insert 1.0) Marketing and Selling Models

Consulting with Stakeholders

relating to all new marketing initiatives

L

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29

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30

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31

Sloman, J., 2008. Economics and Business Environment. 2nd ed. Harlow: Pearson Education Limited

Page 1

Porters Five Forces Model (Porter, 1980) (Insert 1.3)Tuesday, December 22, 2009

Potential threat of new entrants

Through backward vertical integration of their supply

chain, Aldi gain full control over the quality of the

food which they offer in their stores, not only this but

they can potentially limit the number of new entrants

to the market, weather they are suppliers,

distributors or retailers, and prospering. However,

Ocado, an online grocer in partnership with

Waitrose has now launched a fresh food preparation

service where customers can order items such as

meat and fish cut to specification. This means that

this grocer can now compete with retailers like

Morrison's, who also place heavy emphasis on their

in store preparation.(Sloman, J., 2008. Economics and Business Environment. 2nd ed. Harlow: Pearson

Education Limited & The Grocer.,2009. Ocado prepares cuts at depot to replicate store counter service, [Online]

14 Nov. Available at: http://www.thegrocer.co.uk/[Accessed 14 November 2009]

The Bargaining Power of Buyers (Retailers).

The major retailers are the biggest source of

revenue for suppliers, who have few other channels

of distribution for their product. Furthermore, with

the growing concentration in the retail market and

with the growing tendency to source national and

internationally has grown the supply base thanks to

technological and infrastructure improvements in the

macro-environment. This means that the major

retailers have large amounts of power over their

suppliers because if there is some dissatisfaction of

the current supplier which the retailer is using, they

can relatively quickly and cheaply switch to another

supplier because of this ever-growing supplier base.

The suppliers are in competition with each other.

However, Aldi ensures that they establish both

working practices and contractual agreements which

are both fair to the supplier and to the retailer as

well. (Sloman, J., 2008. Economics and Business Environment. 2nd ed. Harlow: Pearson Education

Limited ) &Key Note.,2007. Market Assessment 2007. Supermarket

own Labels, [Online] (Issue Number and Date Unknown).

Available at: http://www.keynote.co.uk/[Accessed 24 November 2009]

Rivalry Among existing Firms

Morrison's offer a unique shopping experience to

their customers, who focus solely on their fresh food

credentials, compared to their competitors who try to

promote their non-food credentials (i.e. Tesco's who

promote their insurance and financial products).

This way they are differentiating away from not only

one competitor, but from the good majority of both

large and small retailers in the market and have

achieved a large sustainable core competence,

which is costly for competitors to imitate. However,

during the recession customers are switching to

cheaper supermarkets such as Aldi and Lidl, who

have seen sales surge during the recession and by

promoting their competence of their prices are up to

30% cheaper than the major retailers.

(BBC News, 2008. Pinch helps discount supermarkets. BBC News, [internet] 20 November.Available at: http://www.bbc.co.uk.news/ [Accessed 22 September 2009] & Sloman, J., 2008. Economics and Business Environment. 2nd ed. Harlow: Pearson Education Limited))

The Bargaining Power of Suppliers

Branded suppliers have some power over their

customers as they have more leeway over which

retailers to they wish to supply to. However,

suppliers of retail-branded products, which are the

key differentiators of the competition associated

what that retailer, need to have that supplier-retailer

communication to ensure retailer specifications are

met. This puts more power on the retailer, and they

use that power to keep a tight grip on prices which

may result in the suppliers loosing out. However,

suppliers must remain competitive if there a large

amount of suppliers on the market and a key

advantage to the suppliers are that their large

customers can easily and cheaply switch to a

particular supplier if they are seen favourable to

another one. However, manufacturers are

competing for shelf space at the retail end with the

own branded labels, however with retailer being

able to imitate branded products, this can dampen

down product innovation and development at the

supplier end. (Clarke, I, Bennison, D, Guy,C., 1994. The Dynamics of UK Grocery Retailing at the Local Scale, [Online]. 22 (6), pp 11-20. Available at: http://www.emraleinsignt.com/ [Accessed 16 September 2009] & Sloman, J., 2008. Economics and Business Environment. 2nd ed. Harlow: Pearson Education Limited)

The Threat of Substitute Products

These days, customers are shopping around in order to find the best price for a product ,

Sainsbury have called this the ‘Savvy Shopper’ . The major retailers stock around 30,000 lines

both being branded and own labelled products and the discount retailers stock around 1,000

lines which are mainly only own labelled goods (BBC News: Aldi, 2009). Studies have shows

that consumers ‘miss’ the branded products which the major superstores sell as they are

perceived as better quality products, reliable and trustworthy. This could be a reason why

some people would choose to shop at a competitors store who would sell national branded

item, over shopping at Aldi, who sell exclusively own-branded items

Sloman, J., 2008. Economics and Business Environment. 2nd ed. Harlow: Pearson Education Limited)

Page 32: Customer Marketing Assignment: Aldi Supermarkets

32

Stuck in the

Middle

DifferentiationCost

Leadership

Focus

Page 1

Porters Generic Strategies (Insert 1.4)Tuesday, December 22, 2009

Aldi forms a strategic alliance

with the Department of Health,

(which can be identified as a

stakeholder) both acting in the

interests of the community’s

health, well-being and balanced

lifestyles by promoting foods and

beverages which are linked to

healthy eating

Store brands do

provide a platform

for retailers to allow

them to improve

margins (Ailawadi,

2001). This is

certainly a strength or

Aldi who can attain

cost leadership status

The increasing

Muslim population

across Europe and

the UK and has

encouraged many

businesses, and

certainly retailers, to

invest in this growing

market

A positive and successful brand

is defined as a name or symbol,

or a combination of the two. It

identifies a product or service of

an organisation as having a

sustainable differential advantage

(Schmidtt, 1999a)

Dibb, S. Simkin, L., 2001. The Marketing

Casebook: Cases and Concepts. 2nd ed.

London: Thompson

Page 33: Customer Marketing Assignment: Aldi Supermarkets

33

Ansoff’s Matrix (Insert 1.5)

Corporate and Social

Responsibility

‘Healthy Eating’

Initiative

The Marketing of

Halal Meat in the

United Kingdom

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34

ID Task Name Start Finish Duration

2010

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

8w26/02/201004/01/2010Stakeholder identification (Phase A)

4.4w30/04/201001/04/2010Stakeholder Engagement

8.8w23/04/201023/02/2010

Corporate and Social Responsibility

Initiative (Healthy Eating) (Phase

One)

4.4w26/03/201025/02/2010Partnership with Department of Health

(Healthy Eating) (Phase One)

4.4w30/04/201001/04/2010Partnership with National Halal Food

Group (Phase Two)

52w30/12/201001/01/2010Rebranding Corporate Symbol

(Phase Two)

16w22/04/201001/01/2010Store Rebranding (South Sector)

16w23/06/201004/03/2010Store Rebranding (Middle Sector)

16w09/09/201021/05/2010Store Rebranding (North Sector)

16w23/11/201004/08/2010Store Rebranding (Scotland)

16w30/12/201010/09/2010Store Rebranding (Wales)

52.2w31/12/201001/01/2010Staff and Management Training/

Workshops (Phase Three)

16w22/04/201001/01/2010Advertising Phase One

16w13/08/201026/04/2010Advertising Phase Two

Page 0

Aldi Supermarkets: Twelve Month Marketing Plan Gantt Chart (Insert 1.6)Tuesday, December 22, 2009

2 52.2w31/12/201001/01/2010Training, recruiting and organisational

restructuring process

18.6w13/10/201007/06/2010Advertising Phase Three

52w16/09/201120/09/2010Advertising Phase A

Departments Responsible

CSR Direcor

Managing Director, Training Consultants

CSR Director

CSR Director

CSR Director

CSR Director

Marketing Director

Chief regional and reigional directors

Chief regional and reigional directors

Chief regional and reigional directors

Chief regional and reigional directors

Chief regional and reigional directors

HR Directors and Store HR

Marketing Director

Marketing Director

Marketing Director

Marketing Director