Aldi Marketing

Topics: Marketing, Aldi, Communication Pages: 8 (2578 words) Published: August 24, 2009
Group Assignment: Application of Marketing Topic
Topic: Integrated Marketing Communication – Advertising and Public Relations Company: Aldi

1.0 - Background of the Company
2.0 – Target Markets
2.1 – Analysis
2.2 – Targeting
2.3 – Strategy
3.0 – Marketing Mix
3.1 – Product
3.1.1 – Variety
3.1.2 – Quality
3.1.3 – Features
3.1.4 – Brand name
3.1.5 – Packaging
3.1.6 – Sizes
3.1.7 – Warranties
3.1.8 – Returns
3.2 – Price
3.2.1 – List Price
3.2.2 – Discounts
3.3 – Promotion
3.3.1 – Advertising
3.3.2 – Personal Selling
3.3.3 – Direct Marketing
3.3.4 – Online Marketing
3.4 – Placement Logistics
3.4.1 – Demand Chain Management
3.4.2 – Logistics Management
3.4.3 – Channel Management
4.0 – Issue 1: Public Relations
4.1 – Analysis of Issue 1
5.0 – Issue 2: Wrong Response Sought
5.1 – Analysis of Issue 2
6.0 – Issue 3: Choice of Media
6.1 – Analysis of Issue 3
7.0 – Conclusion
8.0 – Reference List
1.0- Background of the Company
Aldi is a discount supermarket chain that originated in Germany in 1913. In Australia, the first Aldi store opened in Sydney in January 2001. In just under eight years, Aldi now have over 200 stores operating successfully across New South Wales, ACT, Queensland, and Victoria. Aldi’s success has come from the ability to cut costs in every way possible. Such costs may include the extra freight of free bags, packers and the acceptance of cheques. Compared with Coles and Woolworths, these costs get passed onto the consumer whether they use them or not, but Aldi have created a more user friendly market that cuts costs wherever they can, to save these costs being passed onto the consumer. (Brandes 2008, p27) Aldi have also driven the growth of private-label brands in Australia and have been more successful than Coles and Woolworths in gaining consumer acceptance of these products. Aldi’s private-label brands account for approximately 95% of floor stock and according to Dillon (2009) have both Coles and Woolworths aiming for 20% of their stock to be private-label by 2010. As Aldi are a small grocery store offering a range of only around 700 products, compared to that of Coles and Woolworth’s of almost 20,000 products, Aldi concentrate on only one target market, despite their only form of communication using a mass medium strategy. Aldi have been able to use Franklins’ downfall in order to more successfully select its target market through the use of geographic, demographic, income and behavioural segmentation.

2.0 Target Market:
2.1 Analysis:
When analysing and selecting a target market, bases must be identified. From our analysis of Aldi, there are several standout bases, each will be discussed in turn. 1)Geographic Segmentation: Aldi tends to place their outlets in places that reflect the Income segment that they target. For example, Aldi stores around Newcastle are placed in areas where the real estate is cheaper ie: Hamilton as opposed to Merewether. Quite often the stores are located reasonably close to public transport. 2)Demographic Segmentation: Several variables exist in this category. Aldi targets the larger families, lower socio-economic status with lower income. 3)Income Segmentation: Aldi divides the market according to income. They target the lower income earners (discount buyers), offering a smaller variety of goods at a lower price. This is consistent to larger supermarkets that target a premium market with larger market offerings and higher prices. 4)Behavioural Segmentation: Covers the behavioural traits of the targeted consumers. Aldi targets... -Consumers seeking essential benefits, with no extra features. -Heavy users

-Customers with a high loyalty rate
-Consumers that are buyer ready for the products they offer, and are aware of the store and what they offer. Aldi does not appear to segment based on “Gender,” Psychographic” or the “Age and Lifestyle Stage”. “Psychographic” as a base is only partially targeted; the...
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