Aldi's Success: Strategies For Retail Industry (Essay).

SMART Action Plan

Evolution is the basis of every living entity on this planet. This evidently lays emphasis on the fact that evolution and change are inevitable processes that cannot be escaped. In the business world, the development of a company strictly depends upon its evolution with the relevant trends within its market. This also brings to light the fact that the company's success depends heavily upon its expansion as well as its standing in its designated industry (Wood 2016). The following paper evidently strives to shed light upon Aldi which is a retail store in the United Kingdom. The store sells a variety of different home essentials. In addition to this, the retail store also sells groceries, wines and spirits and Health And Beauty Items.  It is also imperative to note that the store also provides its customer base with gardening equipment, kitchenware and necessities for babies and toddlers. This elaborates the fact that the company caters to a variety of different demands that its customer base can have. The following paper will also present a SMART action plan that will illuminate the fact that the retail store endeavours to eventually penetrate newer markets and cater to a wider range of customers (Girton 2018).

The SMART action goals do not only enable the retail store to expand its customer base but also allows it to conduct its business in a different market. This also satisfies the stakeholders of the retail store which include its customers as well as its managers. This is because through market expansion the company can satisfy its managers with its growth and through expanding its customer base through new products, the retail store also satisfies its customers.

The model mainly sheds light upon how the company can compete with its fellow competitors in its designated industry. The model provides different strategies that the company can implement so as to separate itself from its fellow competitors and successfully conducted business in its designated industry (Islami et al 2020).

This essentially refers to the situation when a company chooses to cut down on its manufacturing costs so that it can provide quality products at a lower price and beat its competitors (Anwar 2016). In regards to Aldi, the retail store can strive to cut down on the manufacturing costs of the variety of different products that it offers its customer base so that it can endeavour to offer them quality products at a lower price and eventually beat their competition in their specific industry.

This primarily refers to the fact that the company will ensure that its product has a unique factor which sets it apart from its fellow competitors (Omsa et al 2017). This differentiation will allow the company to flourish in its designated purpose. In regards to the retail store, the company can choose to provide unique products to its customer base so that it can set itself apart from its fellow competitors and evidently thrive in its designated industry.

This is split into two parts. These include cost focus and differentiation focus. In regards to cost focus, the company strives to focus on the cost factor within its market so that it can compete with its fellow competitors (Viltard 2017). Similarly, on the other hand, differentiation focus refers to the company focusing on its differentiation aspect which is its uniqueness of product in its designated industry so that it can compete with its fellow competitors. In regards to the retail store, the company can choose to focus on any one of these factors so that it can compete with its fellow competitors in their designated industry.

Competitive Strategies

 It is imperative to note that despite these strategies, the best strategy that is suitable for Aldi as a retail store is cost leadership. This evidently lays emphasis on the fact that the company can strive to reduce its manufacturing costs so that it can create a variety of different products and provide them for a cheaper rate in their market. This not only sets the company apart from its fellow competitors but also allows it to expand its customer base which is one of its goals. In addition to this, by expanding its customer base through the variety of different products by applying the cost leadership strategy, the company also positions itself to penetrate new markets successfully (Dimitrescu et al 2018).  In addition to this, it is also pivotal to note the fact that the company will benefit from using cost leadership strategy since it will not only save a lot of money on manufacturing and making of the products but will also essentially increase their profits by providing their customer base with quality products at lower prices.

This mainly focuses on the product that the company provides its customer base for consumption (Išorait? 2016). In regards to the retail store, Aldi can endeavour to develop its range of products. Since the company already provides customers with a variety of different products from different departments, the company can ensure that it further expands its array of products. In addition to this, the company can also focus on the quality of its products. This will not only place the company ahead of its competitors but will also allow it to create a trust factor within its customer base.

In regards to pricing, the retail store can implement value based pricing. This mainly suggests that the retail store can endeavour to price its products on the basis of their value so that they can provide their customers with quality products that are priced fairly (Thabit and Raewf 2018). In addition to this, if the company implements the cost leadership strategy, it will have to cut down costs in regards to the creation of the product so that it can sell the product for cheaper to its customer base. Therefore, the company can also ensure that it prices its products at a lower cost so that they can make profits and earn the trust of their customer base.

Place essentially refers to placing the product at a lucrative and opportunistic position. This means that the product needs to be placed in such a way that it not only attracts its customer base but also earns the company profit (Pogorelova et al 2016). In regards to the retail store, the company can strive to place its products thematically. This means that the company will provide festive products for festival seasons and normal products all year round. This enables the company to not only provide their customers with a variety of choices but will also allow them to serve their customers in a thematic fashion.

Selection of Best Strategy

This mainly refers to how the company strives to promote its products to its customer base. In terms of the retail store, Aldi can choose to promote its products through a variety of different options (Jackson and Ahuja 2016). This includes promoting them through social media platforms as well as through print media. This will enable the company to not only reach out to its customers but will also allow it to expand its customer base by engaging with newer customers on the various platforms that the company promotes itself on.

This essentially elucidates the fact that in order for the retail store to not only enter new markets but also expand its customer base, the company can choose to promote itself through a variety of different platforms (Jovita and Chibuzor 2018). This will not only allow the company to create a certain awareness for its brand but will also enable it with the ability to reach out to a newer range of customers. Thus, the company will succeed in expanding its customer demographic while also entering a new market (Hanssens et al 2018). In addition to this, it is also imperative to note that the company, through this marketing mix will lucratively position itself to earn a lot of profit in terms of serving its customers as well as conducting its business in a new market.

Communication plays a vital role in the overall marketing of a product. This mainly refers to the fact that while a marketing plan enables a company to successfully market its product to its customer base, a communication plan enables the company to communicate with their customer base and evidently promote the product in its designated industry (Arteconi et al 2016). This illuminates the fact that marketing and communication go hand in hand and act as the two pillars behind the success of a company as it tries to market its product in its designated industry. In regards to the retail store, communication mix needs to be applied so that it can enhance the effect of the marketing mix and enable the company to flourish in its designated purpose. The communication mix includes advertising, direct marketing and digital marketing, public relations, personal selling and sales promotion.

This evidently focuses on the way the company will advertise its product to its designated customer base. In regards to the retail store, the company will choose to advertise its product on the television as televised advertisement (Alhawamdeh 2019). In addition to this, the company can also choose to advertise itself on the radio as well as through print media. Print media evidently refers to the company promoting itself on magazines and newspapers. This will allow the company to reach out to a wider range of customers belonging to all age groups.

This mainly focuses on the fact that the company will choose to market its product directly to its customer on the basis of their preferences as well as through digital marketing which is through the company’s social media accounts (Blakeman 2018). This brings forth the fact that the company will choose to market its product through email as well as its social media accounts such as on Instagram, Twitter and Facebook. This will allow the company to reach out to an even wider range of customers through the Internet.

Product Development

This mainly focuses on the relationship that the brand has with its customer base. In order to promote itself and communicate with its customer base, the company will strive to turn its brand’s message to be appealing to its customer base (Amin and Priansah 2019). This mainly suggests that the retail store whose main message is to serve its customers diligently, will enable itself to appeal to its customer base in a personalized way. This will allow the company to create a brand image for itself and will also allow it to reach out to its targeted range of customers.

This exclusively focuses on the company making sale through a person. In regards to the retail store, the company will strive to communicate with its targeted customer base through its sales assistants present in the store (Rusdi Hidayat et al 2018). This means that the retail store will endeavour to create a bond with its customer base and communicate with them clearly through their sales assistants who are present in the store.

This evidently enables the company to communicate with its customer base through creating attractive deals that are only available for a limited time. In regards to the retail store, Aldi can strive to attract its customers through providing time based sales not only on festive days but also on regular days (Chaffey and Ellis-Chadwick 2019). This will enable the company to not only sell a variety of products that they have accumulated but will also enable it to earn profit from its customer base. In addition to this, by providing frequent sale items to its customer base, the company will successfully retain its customers and also create a stronger bond with them.

Implementation and evaluation play a key role in the overall marketing of a company. This evidently brings to light the fact that an implementation plan enables a company to have a clear vision about the various tasks they need to implement in order to succeed in marketing their product successfully. The evaluation plan helps in measuring the success factor of the implementation plan. This mainly suggests that the evaluation plan helps understand whether the implemented steps have been successful in their objective.

Conclusion

Thus, in conclusion, it can be said that marketing plays a key role in the development of a company. The above paper presents two smart goals that the retail store, Aldi, in the United Kingdom must achieve so that it can successfully penetrate new markets and expand its customer base. In addition to this, the above paper presents the Porter’s generic competitive strategy model which helps understand the best strategy that the retail store can implement so as to market itself to its customer base. Moreover, the paper also provides a marketing mix as well as a communication mix which helps in understanding the various marketing goals of the company along with the communication necessary to make those goals successful. Furthermore, the paper also presents an implementation and evaluation plan which helps in understanding the various steps that the company must implement so as to flourish in its designated objective. Finally, in regards to evaluation, the above paper presents the evaluation process to measure the successful implementation of the marketing plan framework based on the identification of the KPIs and methods of the retail store .

Pricing

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