Is an important idea to have good communication channels within the organization. Communication acts like a main key factor to be considered in every step in developing and implementing all organization programs and events including marketing strategies (Olson, Slater, Hult & Olson, 2018). All parties within and outside the organization are required to have good flow of communication to ensure successful achievement of the organization’s goals and objectives. This achievement includes attaining the mission, vision and the values of the organization. Communication in business is very crucial factor like in setting out marketing strategies and implementing them in the marketplace, as it needs effective communication. The following article will describe more on the usage of business communication for an organization to gain durable competitive advantages in the both existing and in the new market. This will be described using ALDI Company which is a global business.
History of the Company
ALDI Company is global business which started in Germany. It is supermarket store which deals with mostly groceries. The business was established as a small foodstuff store by Anna Albrecht in 1913, Germany in the town know as Essen which is recognized as a mining town. In 1948, the son of Anna Albrecht took over the small business and extended to the four more locations. In 1954, the business opened a new outlet in Essen-Schonnebeck which was the first self-service store. In 1962, the name ALDI was established from the Albrecht plus Discount forming ALDI as the first initials in those two names suggests. The business grows progressively since in 1968 there were 200 ALDI outlets more than, in the south locations of Germany. The founder of the company was motivated to provide what is essential in the market.
The ALDI Company survived in the market facing stiff competition until it grows at the high rate of establishing more outlets globally. Over the world ALDI Company has more than 10,000 outlets functioning in 20 countries (Hunt, 2018). These all outlets are worth estimated turnover of $85 billion NZ. In Germany ALDI Company is divided into two location that is ALDI North and ALDI South, as they located in Germany. Later lone the company penetrated in the Australian Market under Australian Supermarket Industry, this was the year 2001.
This document, It will describe the marketing techniques and tactics which will maintain the vision, mission and objectives of ALDI Company in New market, New Zealand.
Vision and Mission of the Company
Vision and Mission statements are used to describe the Company’s short-term and long-term strategies. Also, these statements are used to describe the general overview of the business including the performance and the future goals to be achieved.
Vision statement is used to focus on the future of the company. Is the source of motivation and inspiration to the both employees and the management working in the organization. The vision statement of ALDI Company, states that, “To be a successful and highly efficient, internationally operating discount Company, which works according to a simple business principle – concentrating on the essential for the benefits of its customers” (Henson, 2018).
Mission statement defines the main purpose of the organization together with the key primary objectives. These objectives are related on the means which the Company will satisfy the customer needs and provide team values in the market. Also, mission helps to provide the performance level of the organization. Mission statement states that, “Spend a little, Live a lot” (Bowen, 2018).
Value and Beliefs of the Company
ALDI Company is operating using 3 core values which enables the organization to provide high quality products to the customers at the best price in the market. These values enables the company to optimize the profit becoming strong in financial and able to grow in the market. Also, these values helps the Company to provide the best working environment of the employees and rewarding them accordingly (Riyadi, 2018). These value includes Simplicity, Responsibility and Consistency.
- ALDI business focuses on simplicity through, “creating efficiency, clarity and clear orientation within our organization as well as for the customers”.
- The ALDI is responsible towards the customers, partners and the environment in the following ways, “Stands for our commitment towards our people, customers, partners and the environment. It also includes principles such fairness, honesty, openness, service orientation and friendliness”.
- Consistency. “This leads to realibility. We means what we say. We are consistent in our dealings with people, product price and all other aspects of our day-to-day professional life”.
Product Portfolio offered by ALDI
As the name suggest, ALDI – No Frill Grocery Shopping, this is a supermarket outlets dealing with the groceries. The supermarket in Australia is successfully operating since 2001 begin the Australian discount supermarket. ALDI business operates with products from different suppliers which are known as hand-picked suppliers. These sources they are used to supply the product to company and ALDI brands the Aldi’s labels in the market. Dealing with these suppliers the organization always wins the trust of the customers through proving regular high quality products at low price in the marketplace (Cillo, Griffith & Rubera, 2018).
ALDI also, offers products which are weekly “Surprise Buys”. These are merchandize products like household’s appliances, home electronics, and clothing, toys and sports equipment. To keep the business operations simple, ALDI Company decided to have product restriction for every category and the size to offer. For example, if the company decided to have one brand of Juice, it is available 4 liters only which will of quality product (Perrot, Pineau, Antille & Rytz, 2018).
Competition analysis is very important to be carried out in the market. Both existing and new initiated business all they needed to do competitors analysis and evaluation. In every marketplace competition is obvious so more for the businesses which belong into the same industry. The business having strong marketing and communication strategies always performs better in the market compared to those having weak and poor strategies. Performing competition analysis is important and worth if the business doing this analysis considers the other competition business’s strength, weakness, advertisement and promotional strategies and the product’s benefits and feature in the market (Gao, Tang, Wang & Yin, 2018). These points helps to carry out viable business competition analysis getting the knowledge on the key areas to handle to conger the competitor in the market by formulating strong strategies which will counter face and opportunity of the competitors strategies.
ALDI Company is planning to enter into the new market in New Zealand, therefore, expanding its operations of proving products and services in the global markets. For ALDI Company to penetrate well in this market, it is required to identify the competitors in the market, their strengths and weakness both internally form the organization and externally in the market place. This will help ALDI Company to know the better way of launching new product in the New Zealand market using effective and successful promotional and advertisement strategies to the target market only. ALDI supermarket should be ready to face the following competitor which belong into the same industry (Poulin & Kubanek, 2018). These supermarkets includes, New World Supermarket, Countdown supermarket, Fresh Choice supermarket and PAK’Nsave supermarket, these will be strong competitors of ALDI supermarket when entering in New Zealand new market. The table below describes more on the product, strength, weakness and promotional strategies of these competitors.
Well organized layout
Less variety of the product
TV and Radio advertisement
Use of modern technology in serving customers
Poor customer services
Unique features in branding
Use of digital and social media as exploiting the technology
Have many variety of standards products
Lack variety means of making payment
Use of market events and roadshow in the country
After sales service are of quality standards
Poor systems at the cashier desk
Health and quality products
Use of branded products at their promotional programs and giving customers as gifts.
Table 1: Manually created, (2018).
SWOT (Strength, Weakness, Opportunity and Weakness) Analysis is one of the best tools which is used to analyze the environment surrounding the business. SWOT analysis will help to evaluate and investigate both the internal and external environment of the business. This tool will help to understand better the internal strength and weakness of ALDI supermarket together with Opportunity and Threat in the marketplace.
These are capabilities which are inside the business, are factors which enable the business to achieve its objectives in the market through having effective communication (Singh, Kumar, Gupta & Madaan, 2018). These capabilities includes:
- Pricing Strategies. ALDI is able to survive and grow in the market by proving products with low prices which are comfortable with customer’s needs. Daily products which are used by the consumers are offered at lower price than other business within, therefore, making ALDI supermarket to be highly successful in the market.
- Good product mix.The great advantage of the ALDI supermarket is to have a strong product mix in the market. Also, the business is having branded products and premium brands which are non-discounted to the customers. All these products are branded with Aldi’s logos.
- Customer support is of high level.ALDI support markets always supports the customers through offering wide range of products at the lower prices compared to the business in the market. These products are daily in found in the business to ensure adequate satisfaction of the customers demand.
Through effective communication within the business enabled ALDI business is able to develop and implement effective strengths which enables the business to survive.
These are internal restrictions which influences the strengths of the business negatively (Leiber, Stensaker & Harvey, 2018). The following are weakness of the ALDI business;
- Low margins.Business which operates under discounted outlets are affected negatively by low margins like ALDI supermarkets. Therefore, the business is required to depend on the sales volume so as to survive in the market.
- Penetration of high-income peoples is poor. Is very hard to find customers of high-income class shopping in the ALDI supermarket, therefore, are going to the supermarkets of their segments. The ALDI business is targeting low and medium group in the income level.
- Employee satisfaction is poor.ALDI supermarkets is required to have productivity which is of high level therefore, satisfying customer needs fully, if not so the business will not survive in the market. The employees are forced to work extra duties by having multiple shifts which are poorly paid therefore, creating dissatisfaction to the employees.
These are factors which affects the business externally. This enables and motivates the business to exploit market chances well (Abdel-Basset, Mohamed & Smarandache, 2018). These includes:
- Customer’s preference. Discounted business can charge high prices for their products, only what is required is to provide high quality products and services to the customer.
- Provision of new products.Also there is new gaps in the market which are requiring business attention like proving variety of new products in the market and expanding the existing operations.
- Provide quality services and products. By offering high standards products, will attract the people with high-income pockets thus improving the revenue of the business.
These are external factors in the market which challenges the business negatively from performing well in the market (Jiang, Mao, Hou & Tan, 2018). These threats are:
- ALDI Company is facing competition locally form the surrounding supermarkets in the market. Also is facing global competition form business like Walmart and Amazon.
- Government regulations. The regulation from the government are tough so more the government is taxing at high rate on the business income. High tax rates always discourages business with high sales and income like ALDI supermarket.
- Industry rules and regulations. The principles and codes of operation from the industry is oppressing the business from setting its own rules and regulation of operations.
These are objectives which ALDI is aiming to achieve in the market by providing its services and products to the customers. The following area will be handled:
These are marketing strategies which are aiming specific segment in the market. These strategies are targeting geographical, demographic, psychographic and behavioral segments in the market. According to Ernst & Dolnicar (2018) these are discussed below:
- Geographic segmentation. This is targeting people from a certain region in the market. According to the ALDI supermarkets, has no discrimination of the origin of the customers regardless are from urban or rural regions. Both global and local customers are accommodated.
- Demographic segmentation. All customers of different genders, nationality, and community are welcome to shop with ALDI as the partner business. The only special case in the demographic segment is that ALDI business is only targeting customers with low and medium income level.
- Psychographic segmentation. The supermarket is targeting customers of low social class in the market. This is facilitated by proving simple and clear services and products at cheaper prices.
- Behavioral segmentation. The ALDI is aiming who are willing to purchase products from the supermarkets. These are customers which have positive decision making and positive character towards the business in the market.
- Undifferentiated strategy. ALDI Company is serve all customer in the market without differentiating them. This is achieved by ALDI by employing all market mix strategies in the market which is helping to reach as many as possible customers both potential and existing in the market (Peñaloza, 2018).
- Differentiated strategies. ALDI business is marketing the business using different stores in different location. The business is having branches over the world which aiming different target groups in the market.
- Concentrated strategies. The marketing plan of the ALDI is concentrated in providing cheap products in the market, concentrated to the customers of medium and low class in the market.
These are strategies which helps ALDI to deal with competitors in the market. ALDI has the strength which used to utilize in offering unique services and products in the market. The business is serving by providing competitive prices strategies of low price for their products (Bello & Abdulai, 2018).
The company is selling unique products of grocery to the customers at lower cost compared to the business. This attracts more customers these products are available through, thus enabling ALDI business to have competitive edges in the market (Chang & Shih, 2018).
ALDI supermarkets is a known business in the market by providing its products to the target market. The augmented, actual and core products are important to be considered in the product strategies (Sheikh, 2019).
- The core product.The main product of ALDI supermarket is grocery foodstuffs. The business is solving the problem of the consumer by proving products of low prices in the marketplace compared to other businesses.
- The actual product.The business is getting the actual products from the suppliers then, do packaging and brand them with Aldi’s label. The final product available in the market is branded with the name and logo of the company (Aldi).
- The augmented product.The customers are experiencing more addition benefits from the product of ALDI. These advantages are, having regular supply of the products in the market, customers are enjoying good customer support and availability of good market mix on the product (Nevins, & Peluso, 2018).
Pricing tactics are very important in the market since they acts like the key factors for customer attraction. ALDI supermarket used pricing strategy to win more customers and survived in the market.
- Product mix pricing. ALDI used mix pricing strategy to gain competitive edges. Is by setting out competitive price to their products. The business has minimized the production and other overhead in the business thus achieving competitive price in the market (Liu, Zhai, & Chen, 2018).
These are strategies which are used to boost the product awareness in the market. Through promotional strategies the products of ALDI supermarkets are familiar to the existing market at a very high percentage. The business have employed mix strategies in promotion like advertisement, personal marketing and social media marketing (Camilleri, 2018).
The business is using advertisements “like brands campaign”, this is performed in the TV station and only takes 20 seconds aiming the main product of the business. This advertisement is supported by the slogan of “Like Brands. Only Cheaper”. Newspapers advertisement also is performed supporting the TV programs. Also there is availability of messages communication which say “Swap and Save” (Costanzo, 2018). Promotional materials like bordures and printed document are used reinforce the advertisement and promotional campaign towards the ALDI’s product in the market. Social media like Twitter and Facebook are used to encourage customer to buy and have trust on the brand.
All these promotional and advertisement programs and events are achieved through use of effective communication. Also they are used to facilitate direct and indirect communication which enhanced both direction flow of information between the business and the market which is the customers (Mintzes, 2018).
These are changes which ALDI Company is supposed to develop and implement in the new market of the New Zealand to facilitate effective communication. Two effective promotional strategies are required to have better communication in the organization while in New Zealand.
- Use of promotional programs. These programs are to displayed product messages on the TV stations. For example, displaying the Aldi’s product with the supporting messages like, “Like Brands. Only Cheaper”. This statement will motivate the customers in New Zealand to have positive influence on the product.
- Use of social media. This is like Facebook, Instagram and Twitter. Since money people are in digital error, ALDI business is required to post the company’s brand to the walls of social media with tagged price and other motivates information.
Negotiation Tactics are important while interacting with the management team amongst the employees and the customers (Wahl-Alexander, Curtner-Smith & Sinelnikov, 2018). Using the provided chart in the case study they are cultural differences between the New Zealand and Germany. These includes:
- In New Zealand there is a lot of individualism than in Germany.
- The Germany has more power compared to New Zealand.
- Germany is experiencing large uncertainty avoidance than New Zealand.
- Long Term Orientation is found Germany than in New Zealand.
The following are the recommendation which director of ALDI in Germany will use when negotiation with the Germany owner of ALDI. He is required to use effective communication tools when exploring these negotiation tactics (Sigurdardottir, Ujwary-Gil & Candi, 2018).
- Think positive. The New Zealand is recommended to think positive in all ideas under negotiation.
- New Zealand manager should prepare himself with the points to be handled in the negotiation like, be specific on the problem to handle and the expected solution. This will improve the flow of communication with the negotiation site.
- New Zealand manager is recommended to think of all best and worst outcomes which might happen within the business negotiation.
- New Zealand manger is recommended to negotiate for the good relationship once he meets with the Germany owners of ALDI
- Building values and positive culture should be considered while two mangers are negotiating because of their difference in culture practices.
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