GSBS6300-Integrated Marketing Communication Plan For Aldi

 

The Integrated marketing communication (IMC) plan is a process which attains the goals of a marketing campaign via well-coordinated utilization of different promotional processes which are proposed to strengthen each other. Establishing a connection between different forms of messages and communication at one place can be regarded as the process of integrated marketing communication. It integrates all the promotional tools and mechanisms so that they can work together in coordination (Armstrong, et al, 2015). IMC plan ensures the message from the organization is reliable and it builds relationships with its customers. Each and every organization creates an IMC plan to advertise or promote its products and services in the marketplace. For a supermarket, it is very important to attract more customers by communicating a creative message to the people.

This report includes the integrated marketing communication plan for Aldi Australia that is operating its business as one of the leading supermarket in Australia. Aldi is the most popular global discounted supermarket chain with more than 10,000 stores in 18 nations all over the world including Australia (Aldi Supermarkets, 2018). The below report includes different marketing aspects for Aldi Australia like chosen segments, current marketing mix and its communication objectives. Moreover, there is the discussion about the communication and creative strategy of the company. To attain its communication objectives, Aldi Australia is developing a media plan and strategies which will assist the organization in increasing its brand awareness among Australian population. At the end, the promotional campaign is evaluated by the use of different approaches.

Aldi is German supermarket that has its business operations in most of the parts of European Union. The stores of Aldi are also in United States. Aldi is a Germany based retailer that was founded in the year 1948 by two brothers Theo and Karl. Today, it has turned into one of the largest international food retailers. In Australia, the company has started its business in the year 2001 and it has grown rapidly over the years. The organization is a food retailer butt it also offers non-food at times. In 1990, it often sold computers which were sought after. By using effective pricing strategies, Aldi is able to establish a brand reputation of discounted store (Aldi Supermarkets, 2018). It adopts a worldwide strategy of offering customers the excellent quality products on lower prices. In addition to this, it forces its suppliers to sell them materials at lower prices. This is the major reason behind the growth and success of Aldi. During past few years, Aldi has faced some challenges in Australia that it had to overcome to gain required competitive edge over its competitors.

In today’s competitive business environment, Aldi Australia is operating its operations with the vision i.e. “to provide its regular customers with the products which they purchase repeatedly and ensure that those products are of the highest quality at comparatively lower prices”. At its retail stores, the organization offers a smart way of shopping and provides best nutrition, health and environment. Moreover, it also supplies fresh vegetables and fruits as it take from the domestic producers. In Australia, it has already opened various stores still it is planning to open its store every year (Tsao, 2015).

To develop this integrated marketing communication plan, there will be requirement of some important information about the company and other related aspects (Vos & Vos, 2014). These assumptions are listed below:

• Aldi Australia is one of the discounted retailers and it will be able to maintain its presence in the market.
• The growth of retail industry will be stable and company will be able to become largest Australian retailer.
• The estimated age group for Aldi’s retail services is 20 to 44 years old. This assumption is based on the feedback from of the retail stores.
• It is assumed that it will be tough for the new entrants to make higher capital investment in supermarket industry.
• Moreover, it is assumed that use of social media will be remaining constant or it will increase in the future.
• The company will be able to overcome the challenges faced in the process of IMC plan development.
• More than 15000 will attend the events conducted by the Aldi Australia. It is assumed by looking at the past records of company.

All the above information is not available to create this IMC plan for Aldi Australia. With the available information, the below IMC plan will be created here. 

Competition can be considered as one of the biggest threats for Aldi in Australia. There are various organizations in the industry which offer the products and services in the same manner as Aldi does. There are various international retailers which are making the Aldi’s organizational life tough. Like its products, the strategies and pricing of products can be same that pose more competitive threat to Aldi in supermarket industry (Butler, 2014). There are two types of competitors i.e. primary and secondary competitors which are given below:

Primary competitors of Aldi Australia are the leading retailers which pose direct competition to this company. The description about primary competitors is given below:

Woolworths Ltd. is one of the major organizations in the Australian retail sector. In Australia, the company holds second position in terms of revenues and profits (Woolworthsgroup, 2018). It is operating its business in different sectors such as petrol, supermarkets, hotel, liquor etc. and providing variety of products all over the world. It is selling many grocery products like fruits, packaged goods, vegetables, health and beauty products and household items. Currently, it has 1000 stores in Australia itself. It is capitalizing on surging market share with a new slogan and advertising campaign (Low, 2016). It is promoting its products by using an effective slogan i.e. “Australia’s Fresh Food People”.

Coles Supermarket is another major competitor of Aldi Australia that also offers retail and consumer services. The organization is headquartered in Melbourne and owned by its parent firm Wesfarmers. It was founded in the year 1914 and currently operates 801 stores across Australia. Together with competing brand Woolworths, it accounts for over 80% of the Australian market (Knox, 2011). The IMC strategies and its slogans are changing with the passage of time. Currently, it is promoting its products with the slogan “Down Down, Prices are Down”. It indicates that company is offering its products on discounted prices.

Secondary Competitor 

Secondary competitors are the players that pose lower competitive pressure to Aldi because they are not well-established in Australia. These players are stated below:

Lidl is a German international discounted retail store that runs more than 10000 stores all over the United States and Europe. In Australia, the company is imitating the business concept and strategies of Aldi. Following Aldi Australia, Lidl has no-frills, zero wastage and pass the savings to consumer approach of exhibiting most of its products in their original cartons. It enables the customers to take the products directly from those cartons. Like Aldi, It provides special weekly and monthly offers for its retail offerings (Pash, 2016).

In this way, the above-mentioned are the major competitors which pose competition to Aldi Australia. The organization needs to analyse the competitive forces and adopt effective strategies to overcome this competition.

Under its business operations as a leading retailer, Aldi Australia designs separate products and marketing communication plans for capturing different segments in a market like offering products on discounted prices and mid-ranged products. Developing effective marketing strategies, Aldi Australia targets the customers on the basis of different segmentation characteristics like demographic and psychographic. Under demographic segmentation, the company considers the age and income of people. It targets the people of 20 to 44 years old people who are from the medium income level group (Goworek & McGoldrick, 2015). Under psychographic, it targets the people who are very conscious towards their monthly budget and want to purchase the retail products on lower prices.

The integrated marketing communication plan will be created by targeting the above chosen market segment.

Marketing mix is the strategic framework of a company that includes different strategies which are currently used by Aldi Australia in order to attract a large customer base towards its products. Current marketing mix of Aldi Australia is stated below:

Aldi Australia is using an effective product strategy under its marketing mix. Aldi offers a diversified range of own brand labels that is cheaper and more affordable than other labels. The company offers various products under a roof like fresh fruits and vegetables, packaged food items and other products. The specialized brands of Aldi are accountable for positive financial performance of company (Engel, Warshaw & Kinnear, 2010). Apart from food products, it provides many products that have significant relation with the season. For instance, in winter season Aldi offers snow gear and warm camping gear to its customers. It has positioned itself as a higher quality and lower priced that assisted the organization in attracting a large customer group.

Pricing strategy is the most significant component in the marketing strategy of Aldi Australia. It can be seen that it offers its products at cheaper prices than its competitors. Moreover, its combines different pricing strategies like competitive pricing, penetration and psychological pricing. It sets lower profit margin for non-food products and that is compensated by the sale of grocery items (Chan, Narasimhan & Yoon, 2017). 

Aldi Australia is making efforts to establish an extensive distribution network for its products. The organization has provided a simple store layout so that people can find and purchase their required products easily. It emphasizes on reduction of wastage in transpiration of products as it sets cheaper prices. In addition to this, its retail stores are located in the location that is very convenient for people (O'guinn, et al, 2014). The products of this company are also available through its online website. Now, Aldi has launched its mobile application also so that customers can purchase products easily.

To promote its products, Aldi uses many promotional processes and tools like public relations, advertising and discounted offers etc. It communicates its special offers to targeted customers via ads on television. Moreover, it uses social media sources for effective marketing communication. One of the major public relation activities of Aldi is to donate for the charitable work and institutions (Andrews & Shimp, 2007). These promotional tools assist the organization in enticing more people towards its products and services in retail industry.

Communication objectives are the long term objectives where marketing campaigns of company are intended to enhance the value of brand over the time. These are the desired goals of a promotional or advertising program of a company. Generally, most of the organizations develop IMC plan with the objectives to develop awareness, establish image and stimulate customer desire and to increase the sales. Under these objectives, company frames its brand messages so that it can communicate to its targeted audiences (Khan, 2011). There are different frameworks which can be used by the company for developing its communication objectives for its promotional campaign. In the same way, Aldi Australia is establishing many communication objectives for its IMC plan and these objectives are stated below by using SMART objective framework. The major communication objectives of organization are:

• To increase in-store traffic by 10% in next 2 years
• To increase the sales of Aldi Australia by 15% in the timeframe of next 2 years
• To enhance the awareness of sustainability efforts in the targeted audiences by one million people in next 12 months.
• To increase its productivity by 25%.

Aldi Australia aims to motivate its staff for the benefits of organization. The communication objectives of the company are specific as it proposes to deliver the services effectively. It will increase the Aldi’s productivity by 25% (Parente & Strausbaugh-Hutchinson, 2014).

Aldi Australia will aim to increase its customer base by 16% more as compared to previous year by increasing the number of customers. It will develop the desire of products to buy the products of Aldi Australia.

At Aldi Australia, there is nothing that cannot be attained. The company will get its workforce moving in right direction so that it can achieve its communication objectives.

The above communication objectives of Aldi Australia are relevant to the company’s business practices. Establishing strong connections with targeted customers will assist the organization in enhancing the sales, product demands and customer loyalty towards company’s products. If the company will be able to develop a loyal customer base, it will enhance company’s goodwill and brand equity. Eventually, it will enhance the profitability of company (Kandampully, Zhang & Bilgihan, 2015).

Under this, the company aims to enhance its brand presence within the coming 6 months. After the implementation of this marketing campaign, the company will look forward to attain these objectives in a predetermined timeframe.

The cost effectiveness of mass media because of division has forced integrated marketing communications to the modern marketing. As the customers spend more time on online sources and mobile devices, the objective for marketing teams should be for all the experiences of brand to work together so they are more likely to be recalled. It is the reason that company needs to create budget to divide all the expenses and costs which the company is going to spend on IMC plan. Budget is a tabular presentation of all the costs and expenses which will be spent by the company on its integrated communication plan. By considering different processes and strategies, Aldi Australia will decide an amount for different media used for marketing communication activities. Based on these processes, the company has determined that it will use $150,000 as a budget for designing the IMC plan. The estimated budget of Aldi’s IMC plan is given below:

 

IMC Budget
Media Tools	Amount
Social Media Marketing
1. Facebook	$8,000
2. Twitter	$10,000
3. Google	$15,000
4. Youtube	$20,000
Total Social Media	$53,000
Direct Marketing
E-mail Marketing	$5,000
Internet Marketing	$24,000
SEO Marketing	$5,000
Total	34,000
Print Media	$10,000
Traditional Media
1. TV Channels	$12,000
2. Hoardings	$6,000
Total	$18,000
Events and Sponsorships	$35,000
Total Required Budget for IMC plan	$150,000

To attain the above-mentioned communication objectives, Aldi Australia needs to develop a communication strategy that should be effective and creative as well (Argenti, 2015). This section includes the discussion about Aldi’s communication strategy and execution style.

Communication strategy is an important part of integrated communication plan as it expresses the objectives and processes of a company’s outreach activities, including what a company desires to communicate to its targeted audiences and whom it is trying to approach through this IMC plan. The communication strategy for Aldi Australia will be to place itself with a unique and attractive tagline so customers can understand why they should shop at Aldi’s stores. To do this, the company will develop a brand message and roll out it through different channels to different targeted audiences.

One of the most important elements of the communication model is message. It is the component that shows all the information that a source wishes to deliver to the receiver. When a creative message is constructed, the creator considers the content of message, visual and images in that message. Aldi Australia will develop an effective and attractive message that can impact the customer perception positively (Blakeman, 2018). The current slogan of this company is “Good Different”. In the future, this business entity can promote its products by using new tagline i.e. “Smarter Shopping”. To practice this message, the company will enhance its operations and train their staff to become customer-friendly. In addition to this, it will introduce a promotional campaign to deliver its brand message to the targeted audiences. It will use different visual and verbal features in the message to attract the customers.  

There are three types of information sources like third party, marketer provider and interpersonal sources like family, relatives and friends. Under this IMC plan, Aldi Australia will use marketer-provider source because the message is delivered by Aldi Australia. Moreover, it will use celebrity endorsement to promote the products as people got influenced by them whom they know. Social media can be used as the interpersonal communication source at Aldi Australia.

To promote its products and services, Aldi Australia will use several channels under multi-channel approach. It will enable the company to use different media channels to increase its brand presence (Ashley & Tuten, 2015). These channels are like social media, direct mails, traditional and broadcasting media, personal selling, sales promotion and print media. These channels will assist the organization to spread its message in the market and among its targeted audiences.

Target market can be referred from the above heading “chosen segments”.

Developing and planning a creative brand message can enhance the chances that the receiver of message will understand the campaign in the way as expected. The IMC campaign of IMC aims to develop an awareness of Aldi Australia among targeted audiences (Shimp, 2008). The desired target market response is the increase in the awareness and number of customers in Australia. 

Each and every organization plans to use effective and creative execution style that assists the companies in attaining their communication objectives easily. Creative execution style is the manner in which a specific appeal is turned into advertising message that is presented to the customer. There are different ways of execution which can be used by the organizations. These ways are like imagery, animation, testimonial, symbols, comparison, demonstration etc. Companies try to adopt attractive and creative execution style so that they can entice more customers.

Under this IMC plan, Aldi Australia can adopt effective and simple execution style for delivering its brand message to the targeted population. The company can use comparison to execute the IMC plan. It can compare its brand against the products of competitors like Woolworths, Coles etc. It may include both direct and indirect comparison of products with other brands. It can compare its products on the basis of quality and prices (Keller, 2009). In addition to this, the marketers of Aldi can present its communication message in the form of testimonial where an individual can talk on behalf of products on the basis of his/her personal use. These testimonials work as the product reviews of a customer. Through this, company will be able to impact the consumer perception positively. 

Additionally, Aldi can follow a process through which it can implement its strategies in the practice. This process is stated below:

• First, there should be an evaluation of the current state of Aldi Australia.
• Second, the company will create an impactful tagline which can describe the overcall business and its objectives. It will be focused on the products and services which will be advertised through this integrated communication plan.
• It should determine its targeted audiences so that the company can make its efforts in right direction.
• Lastly, it will select different platforms and mediums to create better communication between company and its targeted audiences.
• It can define its communication objectives effectively so the marketing communication team can understand what the company wants to communicate to targeted population (Sultan, Wong, & Sigala, 2018).

A creative and attractive execution style of communication strategy will help the company to convey its brand message to people effectively. It will be both time and money saving for the firm as Aldi will be able to stimulate the desires of customers very quickly.

Under the process of advertising and marketing communication, appeal is the approach that is used to entice the attention of customers and affect their feelings towards company’s products and services. Each and every company makes different efforts to gain the attention of potential customers. There are various strategies and alternatives which can be implemented by a company to grab the attention of customers. These strategies are known as appeals (Sutton-Brady, Kamvounias, & Taylor, 2015). There are different types of Appeals which can be used by Aldi Australia to get the attention of people. These types of appeal are given below:

Information appeal is one of the most important types of appeal that can be used by Aldi Australia to attract people towards its products and services. Under this, company will share the important information about its products and offers. The advertisement will include different headings and sub-headings which will give information about the discounted offers of the company. In addition to this, Aldi will use some visual elements in its print ads so that it can gain the attention of more people (Shimp, 2008).

When it is about to increase sales, emotional appeals can be an effective part of the advertising strategy and plan. This type of appeal can work well for diversified range of products offered that the company identifies which emotions to arouse in targeted customers. In its IMC plan, Aldi supermarket will create a social and emotional connection with the customers by using social grounds. For example, the company will advertise the products by considering their budget consciousness. In its advertisement, it can communicate the % of profit that is earned by company by doing charity. Appealing to the emotions of customers can assist Aldi to increase its market share or sell more products (Nenycz-Thiel, 2011). Eventually, it will increase the loyalty among customers towards Aldi’s products.

Under this advertising appeal, Aldi Australia can personally contact the customers to sell its products. For example, while offering any baby food product, it will emphasize on the significance of taking care of the nutritional needs of babies. This type of appeal will focus on parents who purchase food for their children (Price, 2016).

Thus, the above-mentioned appeals will assist the Aldi Australia to capture the attention of people in the country. It will enable the firm to enhance its brand presence in the country and all over the world.

To implement the communication strategies in the practice, the company will use different forms of marketing mix (Kaplan & Haenlein, 2010). These media mix strategies will improve the quality of Aldi Australia’s IMC plan. These strategies are stated below:

Print media is one of the cheapest modes of communication under which Aldi Australia can give the ads in newspapers, magazines, billboards. Through this, company can approach the people who are not on social media sites. It is the best way to approach older people as they do not use digital and social media (Sinapuelas, Wang & Bohlmann, 2015).

Nowadays, social media is one of the biggest platforms to advertise the products and services of a company as most of the people are actively engaged to use social media sites like Facebook, Twitter, Instagram etc. It will assist the organization to approach a large population in the country. It is the fastest mode of advertising and communication (Bakker, 2014).

Under broadcasting media, the company can use the television and radio to promote communicate their brand message to the customers (Potter, 2008). Moreover, Aldi can use some modern modes of advertisement under digital media such as mobile applications, blogs, direct mails etc.

By using effective media strategies and modes, Aldi will be able to cover a large population of the country. As a global leader, the company will be able to target mass population by adopting broadcasting media like television. Most of the people watch TV for different purposes like news, series or other episodes. Radio can provide the coverage of local people under this IMC plan. In addition to this, it can target the youngsters and young adults by using social media sites. In Australia, a significant percentage of population is actively using social media sites. Moreover, newspapers can assist Aldi in developing higher media coverage (Fill & Turnbull, 2016). It is a lower cost media and it takes short time to place the advertisement. Thus, by adopting different media mix techniques, Aldi will be able to cover a mass population for its food retail items.

After developing effective communication and media strategies, Aldi Australia will create a media schedule that will include all the objectives and predetermined timeframe for all the activities. This is very important to create a media schedule as it can assist the organization to attain its objectives in timely manner. The company will develop this media schedule by the use of Gantt chart (Petersen, Kushwaha & Kumar, 2015). The Gantt chart includes all the actions of Aldi which will be taken to implement the above integrated marketing communication plan in the practice. It will create a team that will implement this plan in the process so that company can communicate its product message to targeted population.

The implementation plan for Aldi’s IMC strategies is given below:

Serial No.	Key Actions	Period in weeks	Explanation
A	Establishing Communication Objectives	2 Weeks	In the first step, Aldi Australia will establish communication objectives for a new IMC plan. Under this, it will consider the need of company to create a new communication plan.
B	Determining Targeted audiences	3 weeks	After defining the objectives, company will determine the group which it will target for its communication plan. It may include the people to whom it wants to communicate brand message of its products.
C	Analysing media mix strategies	2 Weeks	In this process, the marketing division will evaluate different media options for the products of Aldi. After analysis, it will choose the most appropriate media strategies to communicate with the people (Kalia, 2017).
D	Creating a complete IMC plan	3 weeks	Determination of communication objectives and media modes will lead the organization to develop a complete integrated communication plan.
E	Implementation of IMC plan	4 weeks	After the completion, the plan will be implemented in the process by the top management and other related departments.
F	Evaluation of IMC plan’s effectiveness	2 weeks	At the end, the effectiveness of IMC plan will be evaluated through feedback of customers towards Aldi’s retail services. The company will consider the number of customers and its sales after the implementation (Luxton, Reid and Mavondo, 2015).

After the implementation of Integrated Communication Plan or any promotional campaign, it is very important to ensure that the adopted media options are on the target. This campaign will be evaluated on the basis of how Aldi Australia approaches its targeted audiences and attain above-mentioned communication objectives.  This analysis will be done after the implementation of this IMC plan in the process. First, the firm will analyze the response of customers to the ads given on different media channels. The team of marketing experts will consider that whether the advertisements are effective to gain the interest and attention of people (Percy, 2014).

To measure the effectiveness, top level managers of Aldi Australia will monitor all the actions of IMC plan. Before execution, middle level managers will take the permission of senior managers. The head of marketing department will be accountable for controlling and measuring the costs and expenses of plan. IMC plan will be reviewed regularly by the team of marketing experts. Under control process, the managers will conduct meeting with the Board of Directors of Aldi to show the information and create a proposal for advertising and marketing efforts (Luttrell, 2016).

For the measurement of campaign’s effectiveness, the company will use different approaches like post testing and pretesting techniques. This approach will assist Aldi in gaining feedback from the market. These testing approaches will be executed accordingly such as post testing will be conducted after the IMC campaign. Through this, Aldi will evaluate the effect of above actions and changed perception of customers towards its retail products and services. In addition to this, Aldi will conduct a survey that will take the opinion of customers. It will create a questionnaire that will consist of some questions regarding its services. It will be filled by the external stakeholders and customers of the company (Torppa & Smith, 2011). Moreover, the company will be observing the results of the plan. By this evaluation, it will be assessed that whether the communication plaan Aldi Australia is successful to share its brand message to the population. In this way, success or failure of IMC plan can be analyzed using different approaches. After the evaluation, the company can make the changes in this plan, if required.

From the above report, it can be concluded that Aldi Australia is one of the largest retailers in the world. The company is using effective marketing and business strategies to attract a large customer base towards its products but company is not able to maintain an increased brand image in Australia and other countries. So, company needs to develop and implement an effective IMC plan in the process. The above report includes different media and communication strategies which can assist the organization in gaining attention of people. Integrated communication plan is an integral tool for Aldi Australia that can be utilized by the company to promote its products and services in Australia. The above report finds out that Aldi will be able to attain its communication objectives by the use of above media strategies and overall plan. It will help the business entity to enhance its brand presence in Australia and other nations worldwide. It will gain more competitive advantage over its competitors in retail industry 

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