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Transcript of Aldi
Creating value through the marketing mix
An Aldi case study
History Of Aldi
The chain is made of two separate groups:
Founded in 1913, Essen, Germany
The company first started by the mother of Karl Albrecht and Theo Albrecht, the owners of Aldi.
‘To provide our customers with the products they buy regularly and ensure that those products are of the highest possible quality at guaranteed low prices.'
Another key focus of Aldi’s marketing strategy is on demonstrating that Aldi brands are of equal quality to well known brands such as Heinz and Fairy Liquid.
To do this Aldi ran blind taste tests amongst a cross section of shoppers.
These confirmed that the majority of consumers that liked the famous brands also liked Aldi’s brands.
What is marketing?
The Chartered Institute of Marketing describes the term marketing as the process:
‘Responsible for identifying, anticipating and satisfying consumers requirements profitably.'
The AIDA model can be used to demonstrate the aim of any promotional activity.
Selecting the prices is one of the most difficult considerations when developing a marketing mix. Different pricing strategies that are commonly used include:
increase awareness and improve brand recognition
increase demand for products
improve brand image
highlight the superiority of products and services.
Advertising on television.
The ‘Like Brands’ campaign features 20 second television adverts which focus on a particular product
Printed leaflets are distributed within stores and also to customers living in areas surrounding stores.
Newspaper adverts extend the ‘Like Brands’ campaign and help to showcase a variety of product categories..
In store posters are also used to highlight the ‘Swap and Save’ message.
Above the Line Continued
Below The Line promotion
targeted e-mails to customers
3rd party endorsement and awards
public relations and media relations.
Over 25 billion dollars lost in sales
Aldi’s main marketing objective is to grow its market share within all countries grocery industries.
Aldi Nord "North" which headquartered in Essen
ALDI Süd "South" whos headquartered in Mülheim an der Ruhr.
The place element of the marketing mix involves identifying where the product or service will be sold. When considering new store locations, Aldi takes into account:
the number of people visiting an area
demographic of the area
the position of store - Aldi focuses on edge of the town centre locations with good visibility from a main road and not too much competition
the accessibility of the store and its public transport links
the number of parking spaces available.
Aldi banana .44 Walmart .47 Aldi Eggs 1.55 Walmart 1.79 Aldi Butter 2.09 Walmart 2.18
Aldi Peanut Butter 2.29 Walmart 2.56 Aldi Trash bags 4.99 Walmart 6.97
Using Product, Price, Place , And Promotion to succeed in the Grocery Industry