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Aldi in Australia - 1

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Aldi in Australia - 1
Introduction
Aldi is a German discount retailer which has entered the grocery industry in Australia since 2001. It offers customers very low prices on a limited range of groceries to attract low and working classes. Although “the Australian retail grocery industry is one of the most concentrated in the world, with the two major chain stores, Coles and Woolworths”( Walker, 2004, p. 317), Aldi becomes the another force by its lower prices products and other advantages. This critique will first analyze micro and macro marketing environment. Then it will illustrate overview of Aldi’s market share in Australia and redesign its marketing mix under 7Ps. Lastly, several recommendations will be stated.

1. Marketing Environment Analysis- Micro Trends
As Kotler and Keller stated (2011, p.34), marketing microenvironment refers to forces which are close to a company and have an impact, positively or negatively, on its customers. It consists of the company, suppliers, marketing intermediaries, customers, competitors and publics.
1.1 Trend One: Customers
Customers play an essential role in a company’s marketing. Marketing decision makers always make a strategy to attract their target customers and try to establish a close and positive relationship with them. According to Kotler and Armstrong (2005, p. 124), “Customer markets consist of individuals and households that buy goods and services for personal consumption”. Therefore, a company’s executive officer may make a targeted strategy to satisfy one or more specific groups of consumers.

As Walker (2004, p.326) pointed out, Aldi offers “consumers very low prices on a limited range of groceries”. Although the range of groceries is limited, Aldi choose the best seller brands as their major products. If a brand cannot achieve a satisfying sale, it will be replaced by another one soon, which means that Aldi always choose products that most of its customers can be satisfied, not only because of the competitive price, but

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