Discuss about the Marketing Mix for Comparison of Woolworth.
Comparison of Aldi and Woolworths marketing mix strategy
Marketing mix refers to the action and tactics that can be used after manufacturing the product to the point that it is delivered to the customers. The 4p strategy is known to be the product, place, price, promotion strategies that is done after the segmenting targeting positioning of their products or services. The following is the detailed discussion of the product mix of two supermarkets of Woolworths and Aldi (Wilson and Gilligan 2012).
Woolworths are focused in offering quality and accessibility of their product. Healthy and wholesome products are sold in the supermarket. In addition, Woolworths gives products according their customers’ needs. They also offer their in-house branded products, which are considered to be of their customers perceives quality. The success of this product strategy depends upon the delivery performance of the company (Armstrong et al. 2015). This element of marketing is most important part of market mix strategy. The quality assurance system of Woolworths ensures the great value in their products as well as the limited service they given. In addition, Woolworths dynamic capability in innovation is what gives them a strategic advantage in the competitive positioning.
On the other hand, Aldi also offers its own branded products but their target segment of customers consists of lower income group than Woolworth’s customers. Aldi in-house products also maintain quality. Their products offerings are also have significant association with season. Aldi offers various products that are of good quality and cheaper in comparison, which attracts large customer groups (Wilson and Gilligan 2012).
Price refers to the value of the customers spending. The cost of production is the factor that needs to be considered. Pricing strategies for Woolworths is very dynamic in nature and changes with economic determinants, which change periodically. The promotional sale and offers and discounts are in pricing offers people in their products purchase attracts the customers. The discount and coupons help in widening the customer’s base of their company (Armstrong et al. 2015). The innovation in pricing strategies adopted by the customers also helps in attracting the customers. The retention strategy can also be developed by the value that they offer on their pricing. The discount offers are helpful in attracting customers and in retaining the customers. However, Woolworths believes in not only in pricing strategy, that attracts customers, the quality always matters.
On the other hand, Aldi is known to offer cheaper price in products. They also go by the unit pricing strategy. The combination of penetration pricing, competitive pricing and psychological pricing strategy is also applied in Aldi. The low profit margin on the non-food items that the company sells is very attractive for people in Australia (Shank and Lyberger 2014).
Woolworths have many convenient stores located on the areas and accessible to customers. Accessibility of the products is what this element of marketing mix strategies works on. Choosing a strategic location is what makes the place factor works more properly (Shank and Lyberger 2014). Woolworth’s online accessibility gives it more strategic advantage for convenience to the customers. Though the retail segments always takes into consideration the strategic advantage of any location, the minimisation of waste at the time of transportation of goods must be kept in mind. Woolworths is one among the competitor is global retail that does take this factor into account.
On the other hand, the Aldi keeps its stores layout simple for customers. Easier availability for their customers to purchase discounts based on the transportation. Online website of Aldi is quite popular and also the convenient mobile app is available for their customers (Grant 2016).
The promotional activities of products are dependent upon the visibility of the company. To make the promotional strategy is to make people aware of their products. Different consumer schemes and loyalty programs can do it. Woolworth’s strategy of promotional activity is media based advertisements. Billboard advertising in an area that are reasonably more popular than the other are also communicated to the target market (Grant 2016). This communication medium is known to be more effective than others are. Different product catalogue are also given to the stores, which are point of sale for the company.
On the other hand, being working on lower profit margin, Aldi takes into account different public relational method of advertising their product. Social media marketing is also done for Aldi’ increase in communication with their customers for effective marketing strategies (Helm and Gritsch 2014). The printed catalogue, magazine, and television is also used for promotional activities for effective marketing communication.
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education.
Wilson, R.M. and Gilligan, C., 2012. Strategic marketing management. Routledge.
Grant, R.M., 2016. Contemporary Strategy Analysis Text Only. John Wiley & Sons.
Helm, R. and Gritsch, S., 2014. Examining the influence of uncertainty on marketing mix strategy elements in emerging business to business export-markets. International Business Review, 23(2), pp.418-428.
Shank, M.D. and Lyberger, M.R., 2014. Sports marketing: A strategic perspective. Routledge.
Proctor, T., 2014. Strategic marketing: an introduction. Routledge.