Discuss about the Importance of Marketing Strategy.
The marketing strategy is an important part of business plan of all organisation that is designed to promote and also sale all particular product or services. The success rate of a business along with the profit that is made by business organisation all depends on the marketing strategies that are being implemented. There are various tools and elements that are used by business organisation in preparing the marketing strategy that combine all the business objectives and long term planning process (Baker, 2014).
The current report will critically examine the major marketing strategies that are used by Aldi which is one of the famous retail sector companies. The various tools that has been used by the company in order to establish themselves as one of the successful retail business organization in all over the world
According to Leonidou et al., (2013), there are various marketing environment in business that have strong influence on the overall activities and marketing strategies that are implemented by an organisation. It is important for all business organisations to prepare their marketing strategies according to the external business environment of their operation.
Large scale multinational companies like Aldi uses Pestel analysis in order to evaluate the external business environment. This is one of the commonly used marketing tools that can help to evaluate all the major elements of external marketing environment. For example the political element that includes the government policies and tax implementation plays an important part in the marketing strategy of the company. Other elements like economic and social factors also play an important part in deciding upon the marketing strategy according to the need of the local people. It is also important for the company to evaluate the internal strength and weaknesses in order to understand their internal business environment (Schmidt et al., 2014).
Market segmentation is also regarded as one of the important part of the business strategy in which all the potential customers are divided into different groups according to their buying behaviour and demand (Shih et al., 2013). Few of the major factors play the most important part in the marketing strategy of Aldi.
Demographic factors: As the target group of customer for Aldi includes the low income group it is important for them to have a low budget in the marketing campaign and also lower the prices of all the major products that are being sold.
Geographical factors: The target group of Aldi includes customer from mainly in the rural and suburban areas and hence it is important for them to sell lower priced product and also use traditional marketing strategies.
Psychological factors: One of the major marketing strategies of Aldi include environment friendly policies of selling products along with packaging using environment friendly materials. Hence it will be possible for the company to target all environment conscious customers.
Behavioural factors: The target group of Aldi includes people who mainly use cheaper products. Therefore it is important for the company to have a lower pricing policy in all the products that are being sold.
With all the factors of market segmentation it is possible for the Aldi company to have an effective marketing strategy that can help to retain the customers and also attract new group of potential customers in order to increase their market range.
The process of market segmentation is followed by targeting market policy that can help business organisation to prepare their marketing strategies according to the needs of particular group of customers (Hultén, 2015). The target market group will include all the potential customers of the company. The companies can also divide the target market group by using the element of primary group that includes majority of the potential customers. In case of Aldi the primary target market includes people of all ages residing in the rural and suburban areas. On the other hand the secondary target market includes the customers from the urban and metropolitan cities. As most people in Australia belong from the Metropolitan areas it is important to note that secondary target market group will be much larger in case of Aldi compared to their primary group. However being one of the largest retail business organisation of Australia it is possible for the Aldi Company to easily influence and increase upon their primary target group of customers that will help them to increase their market range and also raise the amount of sales.
It is important for all business organisations to properly identify their primary and secondary target group according to the products and services that are being sold in the consumer market (Madhavaram et al., 2014). As the total number of potential customers of a company is increased it is possible for them to increase the total marketing range of the company.
Proper description of the target group of customers is one of the most crucial parts of marketing strategy implementation process that will ensure high level of customer satisfaction. For example by understanding the need and buying behaviour of the target group of customers it is possible for Aldi to design and manufacture their product that can help to optimise their sales. Aldi Company uses various effective marketing parameters in order to properly describe and understand the need of the target customer groups that includes people from mainly in the rural and urban areas. It is one of the challenging factors of the company to produce higher quality product by maintaining an optimised level of pricing.
By properly identify the need and by describing the buying behaviour of the target customer group it is possible for Aldi Company to have high level of customer satisfaction and also successfully able to retain all the potential target group of customers. One of the major causes of success of Aldi Company is that they are able to properly describe and understand the need of their target customer groups (Polo Peña et al., 2013).
Market positioning strategies is an important part that can help all business organisations to have a competitive advantage in the consumer market and also have a strong influence on the psychological and buying behaviour of all the potential customer groups (Perreault et al., 2013). In case of Aldi which is one of the major multinational retail corporations, it is possible the position themselves to have a healthy competitive advantage and also maintain a high reputation within the consumer market.
With the help of marketing positioning strategy it is possible for the business organisation to raise the popularity of all the product or services that are being sold in the consumer market and also raise the awareness among all potential target customer groups by creating a brand image (Armstrong et al., 2014). The Aldi Company uses proper description method in order to have a healthy competitive advantage and healthy marketing position within the target group of customers. The advertisement and promotional activities are also an important part of Market Positioning that helps to raise the level of popularity of the entire retail product that is being sold by the company. Hence, with overall effective strategy of Market Positioning strategy, it is possible for the Aldi Company to establish themselves as one of the major retail brands in the Global market.
The price of the products along with the promotional strategies is also few of the important elements that help to define the market position of Aldi.
The implementation of the marketing strategies entirely depends on the marketing tactics that are implemented by the Aldi Company. With the overall process of marketing planning, it is possible for Aldi to decide upon their marketing tactics. For example the optimize pricing of the products is one of the effective parts of the marketing tactics that help Aldi to have a healthy competitive advantage in the retail industry of Australia. The company also offers regular discounts in all the major festive seasons that also help to maintain their popularity and also attract new customers. The company also brings regular modification in the quality and features of the products, which help to ensure that regular modification, are being implemented according to the changing needs of the target customer groups. Proper implementation of the digital marketing techniques can also be a part of the marketing tactics that can help to reduce the overall cost of promotional activities and extract large group of potential target customers.
Maintaining healthy relationship with the current and all potential target customer groups is one of the measures reason for healthy reputation of Aldi within the retail and consumer market of Australia. Effective customer care department along with efficient mode of business communication has helped Aldi to have a strong position and high reputation within the Retail Industry of Australia.
The above mentioned marketing strategies and tools few of the major elements of business planning of Aldi that has helped them to establish themselves as one of the major Global retail brand. Profit analysis of the business environment along with effective market position and tactics has helped Aldi to have a healthy competitive advantage and also raise their popularity within the target customer groups
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