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Services Marketing (Marketing Strategy of ALDI)

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  • "Running head: SERVICES MARKETINGServices marketingName of the studentName of the UniversityAuthor note:SERVICES MARKETING1Executive SummaryIn this research analysis, the main motive of the researcher is to analyze the marketingstrategy of ALDI, Aust..

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  • "Running head: SERVICES MARKETINGServices marketingName of the studentName of the UniversityAuthor note:SERVICES MARKETING1Executive SummaryIn this research analysis, the main motive of the researcher is to analyze the marketingstrategy of ALDI, Australia critically. It is a well known and international grocery retailerwhich gives a tough competition to the supermarket chains of Coles and Woolworths. It hascaptured a significant share of the Australian grocery market and makes the massive amountof profit from that. The unique marketing strategy of ALDI by providing the best qualityproducts at the cheapest rate helps to acquire profits in the competitive industry. In thisperspective, Porter's Five Forces model helps to evaluate its marketing strategy properly.Apart from this, the SWOT analysis gives the proper idea about the strengths and weaknessesof ALDI. SERVICES MARKETING2Table of ContentIntroduction: ............................................................................................................................... 3Background of the Company: .................................................................................................... 3Marketing Analysis: ................................................................................................................... 4The nature of ALDI’s Marketing Strategy or Strategies since it began: ............................... 4Exclusive and unique brand products: ................................................................................... 4Limited range: ........................................................................................................................ 5The price changing policy:..................................................................................................... 5Focus: ..................................................................................................................................... 6Porter’s Five Forces model: ................................................................................................... 6Strategic Marketing Options for ALDI moving forward: ...................................................... 7Current Situation of ALDI: .................................................................................................... 7SWOT analysis: ..................................................................................................................... 8Conclusion and Recommendation: .......................................................................................... 10Reference List: ......................................................................................................................... 11Appendix: ................................................................................................................................. 13SERVICES MARKETING3Introduction:The following analysis highlights the marketing analysis of ALDI Australia which is awell known international grocery retailer. In spite of several challenges by Coles andWoolworths, ALDI can be able to secure its position in the international market successfully. In this research study, to analyze the market of ALDI, the nature of marketing strategyof ALDI has been presented and criticized by Porter's Five Forces model. Moreover, itscurrent position and SWOT analysis have been briefly stated to evaluate the strategicmarketing options of ALDI. Background of the Company:The well known supermarket chain ALDI was first established in the Essen town ofth German in 1913 as a small food shop. After that, it spread its 50 new stores and shops inGermany. In 1960, it divided into two parts namely ALDI Sud and ALDI Nord to carry outtheir business independently. At that time, this supermarket mainly provided fresh productsnamely yogurt, sausages and cheese along with fresh meat at competitive prices. Now-a-days,it has nearly more than 7,000 shops which serve approximately millions of people throughoutthe world (Corporate.aldi.com.au 2017).In Australia, the supermarket ALDI has started its journey form 2001 by openingapproximately 270 stores across VIC, QLD, ACT and NSW. Now, it secures the top 10position in the Australian retailers. Exclusive branded products, grocery items, and otheressential products are available in this supermarket along with improved quality andcompetitive price. Moreover, it creates employment opportunities, new investment source,new property and logistics (Corporate.aldi.com.au 2017).SERVICES MARKETING4Marketing Analysis:The grocery market industry in Australia is both competitive and concentrated, and itprovides a tough competition to each other as well as the new entrant. In spite of these majorchallenges, the supermarket stores ALDI has been able to create its position. In thisperspective, the strong and unique marketing strategies help them to accomplish the desiredgoal successfully.The nature of ALDI’s Marketing Strategy or Strategies since it began:At the first stage, the well known grocery stores Coles Myer, and Woolworthscaptured almost 76% of the Australian market. These two supermarket chains earnedapproximately $55 billion profit from the Australian economy. During this period, in 2001,ALDI appeared in the Australian economy as an international grocery store. However, thesituation was difficult as the foreign retailer was banned in the Australian market economy.In spite of these problems, ALDI had secured near about 4% of NSW grocery industry alongwith 83 stores throughout the four states of Australia in 2004. During the opening period, to crack the highly competitive and concentrated grocerymarket industry in Australia, ALDI mainly concentrates on providing the high and improvedquality products at the lower prices. At that time, the main marketing strategies to capture thegrocery market provided exclusive and unique brand products, limited range, the pricechanging policy and focus (Corporate.aldi.com.au 2017). Exclusive and unique brand products:The main and central focus of ALDI is to launch new, exclusive and unique brandproducts in the Australian grocery market. According to Ododo, Mulholland and Turner(2015), to sustain and get success in the competitive market industry, it is essential to makeseparate from other organization by proving new items to the customers with an affordable "

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