Aldi - Case Study of Aldi PDF

Preview

Summary

Case Study of Aldi...

Description

1. Describe what is meant by the term marketing. (2 marks) The term marketing means in ALDI Motor Case is a process of identification, anticipation and satisfaction of consumer requirements in a profitable way.

2. Explain why it is important to balance the marketing mix. (4 marks)

It is important to balance the marketing mix so that it defines the step which is required to make a profitable meet the needs of its customers. ALDI is using different pricing strategies like Market penetration where they are charging lower price for the new product to enter in the market. They use Competitive pricing where they keep the pricing slightly lower than the competitors, so that customers choose their products over the competitors. And lastly they apply strategic pricing where they emphasis more on the quality and brand positioning a product to charge higher price. Aldi set up their stories with simple layout and clear messages “like brands, only cheaper”. This is how they keep the costs low.

3. Analyse the factors that might affect the location of a new Aldi store. (6 marks) When opening a new store location ALDI takes into account the demographic of the area. For example, the population of the area should be more than 30,000 people. If it’s below than the company would not be able to keep the lowest prices that it promises. Aldi focuses more on the central places of town with low competition and high visibility. If these factors are missing they cannot perform well. Lastly, to achieve a great customer base, they have to ensure enough parking spaces. If there is not enough space, customer might go to another grocery store and Aldi will lose those customers.

4. Evaluate how Aldi has identified a unique position within a competitive marketplace. (8 marks)

Aldi uses a balance marketing mix to position and provide their customers the low price products with high quality. In order to get position in the market, Aldi uses a combination of above-the-line and belowthe-line promotions with focus on its “like brands” and “swap & save” campaigns which are improving sales for the brand. Above the line promotions are paid for mass audiences. They has reinforced it slogan “Like brands, Only Cheaper”. The slogan helped to build trust and emotional connection with their customers. The strategies like brands and Swap & Save campaigns show customers that they can save money and get the same benefits of famous brand purchasing Aldi products.

In the other hand, below-the-line promotions deal with customers in social media platform. It has benefit the company to target specific audiences, interact with customers and create advocates which also creates positive feedback for the company....