Discuss about the Marketing Strategies Capabilities.
The first section in the report gives the brief explanation regarding the analysed and the marketing objectives that the company has rendered. The marketing strategies that are currently applied by the company are emphasized and mentioned. The second section, states about the recommendations and the marketing options that can be applied in the Aldi Australian market. The marketing tools and the strategies would help the success of the company. The Aldi Australian market has been analysed with the current marketing strategies and providing the recommendations for the near future; there are some promotional measures as mentioned (Kottler & Amstrong, 2012).
Background to the company
Aldi is a retail supermarket store that consists of two main groups such as Aldi Nord and Aldi Sud. The groups are as such independent ad performs different operations. The company has survived in the competitive retailing market and is a well-known retail store in Australia. Aldi was established by two brothers Karl and Theo in the year 1948; now the company turns into world's biggest food retailer store that wons more than 7000 stores all over the world (Mizik and Jacobson, 2007). The company established in Australia in the year 2001 and then has a rapid growth in the next decade. So, the company follows the policy of providing goods with quality and at a reasonable price compared to other retail stores. The market is wide, and the marketing strategies implemented by the company have become an integral part of the strategies and the success of the company (Debra and Abbie, 2010). The company has faced various challenges in the recent past, so it has to overcome and achieve competitive advantage by its marketing strategies as the report says. There are areas of improvement that can be justified and applied in the grocery stores with the help of strategic advantage as a response to the face the challenging environment. Marketing mix and market segmentation can help the company to achieve the predetermined goals and objectives of the company.
The company has survived in the competitive market and has eventually become one of the respectable retailers. The argument states that other rivals are even great retailing corporations which are well known and has made their name by proving to expand their strategies while indicating and contributing to the success. The marketing position and the target market gives an overview of the marketing strategies that help to analyse the report, while particularly chasing over to the strategies that can be a future option. The Australian market is as such a dominated one and has expanded while adopting acquisitions as such with two big companies in the past decade. The growth of the supermarket is being analysed while the skills are examined to give a success rate. So, the price, product, place and promotion are the main marketing mix components that help to decide over the successful marketing strategies. The company has applied a marketing strategy that affects the consumer choice and helps to build within a stipulated area with an increase in the sales volume.
Marketing analysis and the strategies implemented by Aldi is being discussed a foremost part that indicates different strategies and policies adopted by the company. The recommendations as such for the next decade are even being discussed in the report.
Marketing strategies by Aldi
Aldi being a discounted supermarket chain in the country has mainly controlled cost in the business. The model as such has been unchanged, but the grocery retail store has moreover tried to control the price and increase the quality of the product. The philosophy that is focused on the company is as such as aiming to avoid the superfluous and focusing on indispensable investment. The report justifies the cost and the expenses that occur while the market has a possible saving even after reducing cost. The cost indicates with a figure of 15% that helps in the procurement of the price; the logistics include as such merely 2% and the rental heads and other marketing plus strategies indicate a higher cost including the staff and the payment (Ethiraj, Kale, Krishnan and Singh, 2005). The company observes that instead of extending the hours of opening, the store has a 12 hours opening hours that can be favourable when compared to other competitors in Australia. As such, the competitors have open for 24 hours and 365 days round the year (O’Sullivan, et, al., 2009). There are no advertisements that can be seen for Aldi store as such the company has already its name in the market and the market position that the company plays during the recent years are favourable and apparently with strategic intention. There are no as such lottery terminals add, photo booths, dry cleaning and news agent that has a separate counsellor with a service centre that occupies space for marketing (Douwe, et, al., 2006). The company has made current changes in the with the facility and has ended up with the minimised cost that occurs for the products and the pricing policy. These are the main marketing components that are scattered and are widely used to target the customers while dividing the customer with the market segmentation (Newbert, 2007). The firm then achieves the payroll that helps to increase the turnover ratio with its staffing level and lowers the price as indicated.
According to the Business case studies and fortune 500, the key idea which the company makes while adopting the approach is simple and believes in the limited assortment. The store size is small when the competitor's grocery stores are compared (Cravens and Piercy, 2009). The space occupied is 650 square meters to a maximum of 1000 square meters as per the report as an approximate number. The Aldi store has a common layout that interprets the common layout with four shopping aisles. The packaging of the products and as such the dispatch are even an effective means which undertakes the cost-effectiveness strategy that is provided when price and product are compared with the free parking space. The customers are attracted towards special deals and discounts that the company has over its year. The philosophy that consists of the sales volume is again a different approach that leads the grocery store in Australia. The operating profit for branded products are comparatively less, and the company has taken an approach to moreover sell the products to its brand name (Morgan, Vorhie and Mason, 2009). The success key is achieved by the company while Tesco and other stores even have a market position which cannot be dealt with if marketing strategies are not as competitive as it should be in the recent years.
Strategic marketing options
The strategic marketing options that the company may adopt shortly can be discussed while studying the report and analysing the current strategies that the company applies in the market. The promotional strategies can be initiated, and unique marketing strategies can be adopted by the company which can be in the form of advertisement or promotional measures. When the research about the down period of the company was examined, it stated about the low marketing strategies regarding promotion and place at a very high point (Frosen, et, al., 2013). Certainly, this may fetch a better option with the campaigns and other marketing build confidence connections that attract the customers and targets the audience. Target market and market segmentation are an important measure with the effective campaigns that can be used by the company (Morgan, Slotegraaf and Vorhies, 2009)
The report examined the marketing concepts, marketing mix and the target market strategies that can be implemented by the company with promotional measures. The blend of product and price strategy are very well acknowledged with intense competition. Aldi has made a significant approach in the competitive world by providing good quality of products at a reduced price. Both cost and product are being an integral concept that helps Aldi to attract its customers.
Cravens, W. David.and Piercy, F. Nigel. (2009). Strategic Marketing, 9th Edition. Singapore: McGraw Hill/ Irwin.
Ethiraj, S. K., Kale, P., Krishnan, M. S., and Singh, J. V. (2005). Where do capabilities come from and how do they matter? A study in the software services industry. Strategic Management Journal, 26 (1), 25–45.
Frosen, J.,Tikkanen, H., Jaakkola, M., andVassinen, A. (2013). Marketing Performance Assessment Systems and The Business Context. European Journal of Marketing, Vol.47, Issue.5/6, p. 715-737
Kottler, P. andAmstrong, G. (2012).Principles of Marketing, 14th Edition. New York: Pearson Educated, Limited.
McCharty, E. J. Perreault, D. W.and Cannon, P. J. (2011). Basic Marketing: A GlobalManagerial Approach, 18th Edition. New York: McGraw Hill/ Irwin.
Mizik, N., and Jacobson, R. (2007). Myopic marketing management: Evidence of the phenomenon and its long-term performance consequences in the SEO Context. Marketing Science, 26(3), 361–379
Morgan, N. A., Slotegraaf, R. J., and Vorhies, D. W. (2009). Linking marketing capabilities with profit growth. International Journal of Research in Marketing, 26(4), 284–293.
Morgan, N. A., Vorhies, D. W., and Mason, C. H. (2009). Market orientation, marketing capabilities, and firm performance. Strategic Management Journal, 30(8), 909–920
Newbert, S. L. (2007). Empirical research on the resource based view of the firm: An assessment and suggestions for future research. Strategic Management Journal, 28(2), 121–146.
O’Sullivan, Don.,Abela, V. Andrew., Hutchinson, Mark. (2009). Marketing Performance Measurement and FirmPerformance. European Journal of Marketing, Vol.43, Issue.5/6, p. 843-862
Van den Brink, Douwe., Schroder, Odekerken Gaby., and Pauwels, Pieter. (2006) The Effect of Strategic and Tactical Cause-RelatedMarketing on Consumers' Brand Loyalty. Journal of Consumer Marketing, Vol.23, Issue.1, p. 15-25
Zahay.D., and Griffin, A. (2010) Marketing Strategy Selection, Marketing Metrics, and Firm Performance. Journal of Business & Industrial Marketing, Vol. 25, Issue, 2, p. 84 – 93