Marketing Management
Marketing Management
Student Name: Evgenia Kanelova
Student ID:
Contents
Introduction3
Construction of a Marketing TOWS for ALDI, explaining the Marketing Audits4
Three objectives for “Express Ourselves” Marketing Campaign for 12 months period7
Marketing Mix Plan of ALDI9
Customer Service for `Express Ourselves` Marketing Campaign12
Conclusion14
References15
Introduction
Marketing management, an organisational discipline focuses on the application practically of marketing methods, techniques and orientations inside organisations, enterprises and on the management of firm’s marketing activities and resources. The father of marketing Philip Kotler stated that it is the analysis, planning, implementing and controlling of different programs which are designed to bring about the expected exchanges with target markets to achieve organisational objectives. This paper will construct marketing TOWS for Aldi as marketing audit and a campaign will be launched with Express Ourselves for Aldi. The marketing mix plan will be executed within Aldi as well as how it can improve the customer service.
Construction of a Marketing TOWS for ALDI, explaining the Marketing Audits
ALDI is an overriding and potential company in UK because it generates a large number of profits which contributes directly to GDP. This section will prepare internal and external audit which is regarded as marketing audit (Aldi, 2020). For this auditing, TOWS analysis will be applied which can interpret the strengths and weaknesses as internal audits on the other hand opportunities and threats which are regarded as external audits for ALDI. Now these audits within ALDI are given below which will ensure the current position of ALDI:
Strengths
It offers low cost goods
It executes lean operations
Good quality products
Supplier relationship is positive
Environmental policy is effective (Bhasin, 2020)
Innovative sales model
Stores layouts
Stores Locations
Weaknesses
Variety of goods offered
Customer services
Ability to stock (size of stores)
Quality Perception (Bhasin, 2020)
Consumer familiarities
Technological adaptation
Aesthetics store system
Opportunities
Market grabbing in US and abroad
Brand awareness and loyalty will be increased
Organic and fresh food offerings
Using of technology to increase shopping experience
Expand urban presence (Morgan, 2017)
Focus on customer relations and perception
Develop employee effectiveness and providing training as effective participants.
Threats
The competitors with low costs are larger
Fuel price is very fluctuating
Government food subsidiaries
Tax impacts are very changing
Online shop increasing
Price sensibility of consumer
Low brand loyalty (Morgan, 2017)
Table 1: ALDI’s SWOT analysis
Figure: TOWS Matrix
Source: (Self-made)
TWOS Analysis – the twos matrix indicates to internal and external audits which test the current position of the organisation (Raouf, 2019). Besides, the interlinked and interrelation of the variables are presented through this model for example, strengths/opportunities, weaknesses/opportunities testing for which it is called TWOS matrix.
Strengths/opportunities –
This is called maxi-maxi strategy which utilises the opportunities to make it as assistant for the strengths of ALDI (Raouf, 2019). For example, the low cost leadership is the strength of this company, it can be expanded and explored abroad and US market as this opportunity is open for ALDI. Besides, it will introduce new quality products if the expansion opportunity is given.
Weaknesses/opportunities –
Alike the strengths to decrease the weaknesses, the opportunities will help picking the strategies that is called mini-maxi strategy. The weaknesses of the company will be minimised by maximising the opportunities in the organisation. For example, using digital technology the customer service will be developed and increased because it is the weakness of ALDI. Besides, organic and fresh food offerings will attain in meeting the quality perception of ALDI.
Strengths/threats –
This strategy is called the maxi-mini because when the strengths will be maximised the threats will be minimised that increase the performance of the organisation. For example, the internal strengths should be used to avoid and minimise the external threats of ALDI which is possible applying this theory (Raouf, 2019). High competition in the grocery market is presence which is threat for ALDI that may be overcome maximising the strengths to produce quality products and customers services. It will become the best solution for ALDI to minimise the threats of this company.
Weaknesses/threats –
The most defensive spot or position for the TWOS matrix because always needs to defend threats and weaknesses. It ensures the minimisation of the threats and weaknesses which is called mini-mini strategy. For example, as the online shop is increasing day to day people are not used to shop products from the outlets. It should be taken as opportunities because the technological adaptation can ensure online shop market accessing for ALDI and this will increase the familiarities with consumer. This ways the threats will be minimised as well as the weaknesses will be minimised easily (Aldi, 2020).
Above TWOS analysis ensures the current position of ALDI where they are operating their business. This also ensures the internal and external audits within ALDI where strengths and weaknesses, opportunities and threats have been analysed and explained within this company.
Three objectives for “Express Ourselves” Marketing Campaign for 12 months period
The market is not familiar outside of UK; customer service is not perfect and technological adaptation low although it follows low cost leadership in pricing according to the current scenario of ALDI. High market competition with low costs and grocery business are the threats for this company (Aldi, 2020). For which to express the, to the world some objectives have to be set which will be achieved within 12 months periods. Now these three objectives are stated and justified below:
Express Ourselves
“Express ourselves” campaign needs to set three objectives which are given below:
1. To maximise the customer service adapting technology
2. To expand the business in USA and abroad
3. To become familiar with consumer adequately
1. Customer service is little poor in ALDI which should be developed that’s why this is selected as objective in this campaign. As the technology is not adapted effectively, customer service is not being practiced in maximum impacts. To maximise the customers services, technology should be utilised appropriately. For example, in the outlets products pricing should shown in digital machine and the weight of the products will be automatically counted even the prices of total purchases will be ensured. It might decrease the consumption of time and the satisfaction of the customers will be increased (Wilson et al., 2016). It will ensure the maximisation of customer service. Even the online shop will be active which will attract the customers towards ALDI. It will take not more than 3 months in total
2. Market expansion will be possible through a business research before expanding the business in abroad. A business research with primary data will be executed through market expansion that will ensure effective data about the market and ensure its demand, income of customers, expectations and different portfolio which will ensure the market expansion in USA and abroad. For this, different expansion strategies can be followed e.g. franchising, direct investment, licensing, joint venturing and many others (Ren et al., 2019). It will take 6 months total because to research the market it takes 4 months and after this it will easily be expanded
3. To become familiar with consumer it needs to promote the business using digital technology. In USA and abroad, information about the organisation should be reached by promoting the business using digital media. For example, social media, sponsorship in Google, and other biggest events. Billboards and advertising can be effective solution for becoming familiar with consumer market. It takes 3 months even less than three months because digital promotion and creation of brand awareness is less than 7 days.
Objectives
Periods
To maximise the customer service adapting technology
3 months
To expand the business in USA and abroad
6 months
To become familiar with consumer adequately
3 months
Total
12 months
Table 2: Timeline of achieving the objectives
Above three objectives are able to express ALDI’s market in worldwide because it achieved best customers services as it has best quality products with low price. Then using different market entry strategies, it can expand the business in USA and finally the consumer will become familiar with this brand using brand awareness and loyalty.
Marketing Mix Plan of ALDI
With the extended marketing mix elements people, process, physical evidence, the four Ps products, places prices and promotions are included in marketing mix plan. Above the current positions of ALDI has been analysed and three objectives to express ALDI have been justified which indicate where ALDI wants to be (Otieno, 2018). After that it should execute how ALDI could get there and for this reason it will apply the marketing mix plan because it ensures the analysis of products, places, prices, promotions, people, processes and physical evidences of ALDI. Now this analysis or plan is given below which will be achieved within 12 months periods:
Figure: Marketing Mix (7Ps)
Source: (Self-designed)
Products
The affordable food products are supplied with high quality claimed by ALDI whereas other branded company offer same quality products. From the selected suppliers the products are sold by ALDI and the controls of costs in production have own and so it enables the price setting and ensures low costs from other supermarkets (Hollensen, 2018). Fresh fruits and vegetables, health and beauty products, households and soft tools, stationary, electronic products and cloths are stocked by this company that will help to ensure product strategy.
Price
Due to cheap market price and quality of products, ALDI offers own branded products which are not available with competitors. It ensures unit pricing strategy that help to customer to compare with others. The market penetration is followed which ensures their entrance to the market with low products with quality (Hollensen, 2018). Competitive pricing strategy is the strength of ALDI which will ensure below price of competitors. Besides, this brand will execute psychological price like £3.79 instead of £4 that will be intelligent profits maximizing strategy.
Place
Within 18 countries, it has 8000 locations or stores and roughly a new store opens every week in Britain. The layout of the store is kept by ALDI always simple to ensure the minimum costs of the customers. The local warehouses are used to store the products which are collected from different selected suppliers. The warehouses are maintained effectively so that the products quality can be ensured and maintained (Hollensen, 2018). The waste disposal and transportation of goods are ensured environment friendly and regional appearance is maintained with local languages.
Promotion
The negligible promotion is applied to ALDI because under the marketing mix strategy ALDI promotion activities are comprehensive. Even it doesn’t maintain the marketing department in Germany that ensures it is not concern about marketing and promotion (Otieno, 2018). It offers super buys which create buzz to the customers because it sustains till last stocks and changes every week. It communicates with the customers as “ALDI informs” and information about ALDI is reached through direct mail or newspaper. Electric display is ensured by this company which helps to be promoted the brand to the customers that should be increased.
People
With lower number of employees, ALDI operates the business which retreats this company from competitors. The layout of this company ensures the own section for each product that helps to the customers to find it easily (Otieno, 2018). So without assistance of employees it is possible to sell the products. Some of employees are working for scanning the products and settle the payment with computerized system. But most interesting thing is that, the employees are paid high scale rather than competitors because they have to take pressure.
Process
Customers in ALDI have not to face any hassle because it designs the layout of the store with easy access. Finding the products from different sections, indicators will aid them which must be written with local languages and mostly English language, besides the sign and arts will be placed at the outlets (Aldi, 2020). The employee assistance is not required because it has well organized. The quality of products is high and price of brands are set effectively that reduce the gathering of customers and will assist them to remove confusion.
Physical Evidence
For the standardization and global pricing with simplest business process, ALDI is renowned globally because 85% products are stocked from home brand and 15% products are socked from recognized brands in the world. Obviously it maintains global pricing and ensure cheap price which is cutting in the market globally. Many stores have same prices globally that ensure the physical evidence (Bhusan, 2020).
This way ALDI will ensure the marketing mix strategy within seven P of marketing and this will help to achieve above three objectives within 12 months planning.
Customer Service for `Express Ourselves` Marketing Campaign
Customer service in ALDI is not satisfactory because it has lack of employee’s presence in the outlets of ALDI. As USA and other countries are used to employee’s interaction with the customers, the services from them should be satisfactory as well as it should ensure the employee’s presence in the outlets with highly skilled and experienced with customers service. Some tips and recommendations can be provided for ALDI in this marketing campaign which will help to improve the customer service (Lynch et al., 2018).
SMART Goals for customer service
ALDI should focus on SMART goals for improving the customers because it needs specific, measurable, achievable, reliable and time-bound otherwise the goals will not be achieved. For example, what type of service should have to be provided, how it will be provided, when the service will be implemented, who is responsible for it and why it should be ensured (Pérez-Vera et al., 2017).
Regular feedback
Customer’s feedback impresses to the customers if it can be executed daily. The customer feels he is special for the company and politeness and hospitality will increase the loyalty of the customers towards the organization. According to the customer’s satisfaction the service further will be provided if previously any faults can be identified, the service for further will be negligible of faults (Lynch et al., 2018).
Customer Engagement
The customer should be involved in all activities that attract them easily because it will be shown off for the organization and word of mouth promotion will be increased. It actually encourages the customer engagement when the customers will be preferable and provided special services. Daily updates and concentration on the customers should be encouraged that really ensures the customers engagement and it will help to improve the customer service (Pérez-Vera et al., 2017).
Review the call centre scripts
The call centre is an important place for the customer service in ALDI because it has to deal with customers with their requirements and demands. To handle this situation, the scripts should be enlisted so that experienced employees can handle it easily without unconsciousness. It actually helps to overcome the barriers of communication in the organization.
Complaints Handling
The guest’s complaints should be handled effectively otherwise the bad reputation will be created towards the company within ALDI. The complaints should be collected from the customers and instantly these should be solved according to their requirements. First of all the employees and agents should have to hear the complaints peacefully with empathy then an effective solution will be provided that will ensure the benefit the customers (Lynch et al., 2018).
Online media or social media
Social media and online shop should be affiliated effectively that will increase the awareness to the customers about the company. If ALDI ensures online shop, people can easily get the online service which will save time of them. In this way, the customers will be satisfied with LADI because of short time service provision with effective time saving. It creates a good image for the company and helps to improve the customer service.
Provide training to the employees
Employees of ALDI only can ensure the customer service with high level because they deal with the customer directly which should be effective otherwise the customers can be dissatisfied with the service. About it, the employees should be trained and developed the strategies to impress the customers (Aldi, 2020). How to communicate with customers and deal with them all of this should be provided to them that must increase the customer service quality within ALDI?
Personalize manage and address by name
Most of the time, it should be personalized service and the employees should address the customers by their name. It creates a good impression of the customer on the organization. It will be possible when the CRM system will be active and history will be reviewed to find the name of the customers (Bhusan, 2020). The personalized managed ensures the satisfaction and claims with ALDI will be reduced because it will be personalized service complaints.
Above these recommendations and tips can be ensured by ALDI that make sure the effectiveness of customer service within ALDI.
Conclusion
As an international organization it must have to execute marketing activities otherwise it is not possible to promote the brand easily. ALDI has some interferences in the current position which was evaluated with TWOS analysis in this paper and from where three objectives were selected here to improve the barriers and threats of this company. Application of marketing mix plan, the objectives were met and finally some customers related barriers were overcome through above recommendations and tips these must have to be applied in ALDI.
References
Aldi.co.uk. (2020). ALDI UK | Homepage. [online] Available at: [Accessed 24 March 2020].
Bhasin, H., (2020). SWOT Analysis Of Aldi - Aldi SWOT Analysis Explain. [online] Marketing91. Available at: [Accessed 24 March 2020].
Hollensen, S., (2018). Marketing-Strategie und Marketing-Mix. In Einführung in das Bildungs-und Kulturmanagement (pp. 31-44). Ziel-Zentrum für interdisziplinäres erfarungsorientiertes Lernen GmbH.
Lynch, D., Price, G. and Hofmeyr, K., (2018). Customer service improvement through engagement: a study of the semi-skilled, frontline workforce in the retail industry in South Africa. African Journal of Employee Relations, 42(1), pp.1-34.
Morgan, R., (2017). Aldi Hits New High in Supermarket Wars. Roy Morgan.
Otieno, E., (2018). Aldi Market Report. GRIN Verlag.
Pérez-Vera, S., Alfaro, R. and Allende-Cid, H., (2017), July. Intent classification of social media texts with machine learning for customer service improvement. In International Conference on Social Computing and Social Media (pp. 258-274). Springer, Cham.
Raouf, A.P.D.R.A., (2019). Self-marketing by building personale brand using (TOWS) Analysis as suggested model. Tikrit Journal of Administration and Economics Sciences, 15(Special Issue), pp.53-63.
Ren, C.R., Hu, Y. and Cui, T.H., (2019). Responses to rival exit: Product variety, market expansion, and preexisting market structure. Strategic Management Journal, 40(2), pp.253-276.
Wilson, A., Zeithaml, V., Bitner, M.J. and Gremler, D., (2016). Services marketing: Integrating customer focus across the firm.