Aldi Essay
MARKETING COMMUNICATIONS
TABLE OF CONTENTS
Purpose of Aldi’s Campaign 3
Intentions of Aldi’s Campaign 3
Marketing Communication Methods Used By ALDI 4
Aldi’s Integrated Marketing Communication Wheel – Fig. 1.1 4
Segment of Consumer Market Aldi is Seeking to Attract 6
Proposed Integrated Marketing Communication Wheel for Aldi– Fig. 1.2 8
Poster for conveying the essential messages of ALDI’s campaign – Fig. 1.3 9
Alternative Marketing Communication Methods – Aldi 11
Aldi’s Alternative Marketing Communication Wheel – Fig. 1.4 12
Changes Aldi are Making in the Marketing Mix 13
References 16
Bibliography 17 …show more content…
1.
Purpose of Aldi’s Campaign
One of Aldi’s main purposes in their campaign is they want to appeal to middle Britain by refurbishing and building new stores and closing those that does not fit its new image, as it was stated in the case that “hoping customers will be pleasantly surprised and come back for more”.
This new market segment Aldi would be attracting would be partially from their competitors as stated by the regional managing director “Tesco customers are high on the Aldi target list and the new store has been designed with this C1/C2 customer demographic in mind”.
In addition Aldi’s campaign aims at planning on retaining their current customer base with their discount offer and tagline “Spend a Little Live a Lot”.
Another main purpose of Aldi’s campaign is to start getting things right, something that they haven’t been able to do in the past decade.
Transforming the appearance of the displays, by improving the range and quality of the store layout, design and decor.
Intentions of Aldi’s
Campaign
The main intention of Aldi’s campaign is that they hope to target a new market, i.e. the C1/C2 customers, aligned with this is the intention is the fact that Aldi wants to double its present market share from 2.3 %, they can achieve this by taking away some of the customers from their competitors. For example in Trinidad Pricesmart has taken away market share from the other major retailers in the supermarket industry. You would mostly tend to find the higher class of individuals shopping here at Pricesmart; this is the identical objective that Aldi is trying to achieve in the UK.
Updated layout, design and décor would assist Aldi in promoting a new quality image, hoping that the customers would be pleasantly surprised and as a result produce return business. As seen in the case where aspirational and exotic foods are located next to each other as these products complement each other.
Another intention of Aldi’s campaign is to continue with its discounting philosophy so that while the company’s image has improved, loyal customers that make up their present market share would continue to shop at Aldi knowing that they are getting best value for their money’s worth.
In addition main reason for the introduction of the campaign is for Aldi to successfully shift its customer profile as stated in the case “by the increasing number of 4 x 4s in our car parks.” This actually shows that the campaign is showing that the C1/C2 customers are being attracted by Aldi promotional campaign.
Aldi intends to create greater variety for its customers as they have extended their range of fresh produce, increasing the alcohol lines thus giving customers a wide variety of products to choose.
Change the old German philosophy is another intention of Aldi’s campaign where from basic designs, poor locations and branding Aldi has changed the colour, increased the signage, lowered shelving so that products are better displayed and the layout of the store has changed so that customers can easily navigate their way through the store.
Also Aldi intends to create faster turnover at the cashiers by incorporating extended barcodes and as a result this reduces time customers have to wait to pay for their goods.
Marketing Communication Methods Used By ALDI Aldi’s Integrated Marketing Communication Wheel – Fig. 1.1
Aldi used three main marketing communication methods seen in Fig. 1.1. These included Advertising, Corporate Identity and Sales Promotion.
Advertising according to Cole (1996, p266) ‘is the process of communicating persuasive information about a product to target markets by means of the written and spoken word and by visual material.’ The basic framework and concepts of advertising are mainly to perform marketing research, specify the goals of communication, develop the most effective message for the market segment selected, selecting effective media (newspapers, television and outdoor posters), compose and secure a budget, execute the campaign and evaluate the campaign relative to your goals and objectives.
Aldi launched its advertising campaign that included; “an-above-the-line TV campaign complemented by outdoor poster activity and newspaper advertising. Potential customers are being made aware of what Aldi has to offer these customers are targeted in different ways as some may read newspapers only others may only look at television or both the newspaper and television. Another form of advertising undertaken by Aldi is the use of posters that are strategically placed as close to the target market as possible so that they can become aware of Aldi’s new quality image change.
Aldi worked on conquering its target market by changing the design of the store “gone is the dark boxy exterior in favor of glass and aluminum…the stark white interior has been replaced with a warmer beige tone, signage is much clearer, sightlines have been improved…fresh produce ranges have increased, alcohol lines have been extended… the store layout is simple efficient and easy to navigate which keeps prices low”, for example the incorporation of extended barcodes that minimizes delays and ensures a minimum number of customers at the cashiers at any one time. In addition those stores that do not fit the high quality image of Aldi would be closed, Aldi is also looking to expand its outlets to the target market (C1/C2 customers) by either looking to acquire an existing business or purchasing land to set up especially in the south east of the UK.
“Sales Promotions are marketing activities that stimulate consumer purchases and improves middlemen or retailer effectiveness and co-operation” as stated by Cateora & Graham (2002, p476). These are usually short-term efforts directed to the consumer or retailer to achieve such specifics as to induce purchase, trial, etc. Types of sales promotion may include; in store demonstrations, samples, coupons, gifts, discounts, contests, twin pack bargains, point-of purchase displays, etc.
Sales Promotion was also part of Aldi’s marketing communication mix as although their image change to a higher quality one management continued with its discount philosophy. As stated in the case this strategy is a risky one especially when trying to target upmarket customers, however from the example of the Rugby store it is likely to be a success.
In addition Aldi invited ‘The Grocer’ a magazine that carrys information about developments taking place in this retail industry to the opening of its new store in Rugby. This in itself was a vital communication method used by Aldi, now all those who subscribe to ‘The Grocer’ would know all the development that Aldi has undertaken.
2. Segment of Consumer Market Aldi is Seeking to Attract
The segment of the consumer market that Aldi is seeking to attract is the C1/C2 customers and those just above and below them. The ‘class system’ in the UK must be understood here as it indicates the range of individuals and their income and spending patterns. C1 customers are those set of individuals that looks for value for their money and also the best option of potential products before they actually make a purchase. C2 customers consist of the working class people, i.e. individuals who shop around before making their choice. Aldi may also wish to attract customers that are just above and just below this C1/C2 group because some of these individuals may have the identical spending pattern as the C1/C2.
The most effective ways for Aldi to reach this C1/C2 segment is by targeting the potential group and positioning the company strategically. The market here is segmented based on social class, therefore the target is the working class.
Probably the most effective way of reaching this target market is through direct mail. This is where mails are sent directly to specific persons, it is usually customized to appeal to the addressed individual, messages are usually up-to-date and the message can be changed depending on the persons response. Aldi can select its target market and send information through mails informing both repeat and potential customers what they have to offer and also to keep them informed of new products they may received from time to time. This is a cost efficient method of informing individuals what is being offered as it eliminates the wastage of resources. In addition when the target market that includes teachers, nurses etc receive direct emails, these individuals feel a sense of importance as letters are addressed to them and regard Aldi as a company that has great consideration for customers.
Advertising through the different medias such as the television, newspaper and posters is another way in which Aldi can reach their potential market. However this is a more general promotional tool as everyone is being made aware of Aldi and what it has to offer once they see the advertisement. This can work to attract customers who are not really the prime target for Aldi, for example Aldi’s target market is the working class people however because of the large advertisement campaign some customers from the other groups both of higher and lower social class would also purchase items from Aldi.
Improving corporate identity is another way where Aldi has communicated the changes associated with targeting this working class segment of the market. A company’s image is important in attracting customers and Aldi has realized this by changing the basic designs to an updated one with aluminum and glass, changing layouts and displaying products better with more appropriate lighting and in general making the tore easy to navigate that would assist customers in knowing exactly where they can get particular items. This method of marketing communication is a good one because previously the target market would have probably said that because of the image Aldi portrayed it was unattractive but now as this change is made it is appealing to this working class segment of the market.
Public relations or Publicity is another way in which Aldi can attract its target market. This method is where Aldi can sponsor activities and events, showing the public that the company is interested in the development of the community. For example Aldi can sponsor a local youth football club within the community where mostly the working class children is involved, the segment would say to themselves since Aldi is supporting their kids and the local community they would support Aldi by shopping in their store.
These proposed marketing communication elements discussed above, shown in Fig 1.2 are very effective ways for Aldi to reach its segment once it is used properly. Proposed Integrated Marketing Communication Wheel for Aldi– Fig. 1.2
3. Poster for conveying the essential messages of ALDI’s campaign – Fig. 1.3
The poster shows the essential messages of Aldi’s campaign where the main activities stated in the case is displayed with the main objectives to capture the customers awareness, interest, desire, trial and adoption.
The poster invites customers to be aware of the company, how it has developed and in addition what Aldi has to offer customers. The poster indicates that Aldi have created a more customer friendly shopping environment, a wider variety of products in comparison to before, new design and lay out of the displays and some of the products being offered at Aldi.
Its intention is also for customers to reate interset in Aldi, hoping that they would visit the store and be presently surprised.
It also creates desire for customers to want to go and visit Aldi and get all their needs fulfilled in a one-stop shop.
Together with this the poster urges first time customers to come into Aldi and see what they have to offer, customers who shop at the competitors are beng invited to experience bigger and better shopping after this has taken place then they would make Aldi their shopping centre rather than one of the competitors, when they visit Aldi they would now adopt this store as their main centre for shopping.
4. Alternative Marketing Communication Methods - Aldi
There are other marketing communication methods that Aldi could have used such as Direct Marketing which includes direct mail, telemarketing the internet, publicity that includes sponsorship (see Fig. 1.4) besides those indicated such as corporate identity, sales promotion, advertising through television newspapers and posters. These are designed especially to inform the target market of the product being offered and entice them to buy.
Direct Marketing is where the message is communicated directly to the potential buyer. Forms of direct marketing may include, direct mail, telemarketing, Internet marketing. These messages are usually addressed to a specific person and as a result designed to appeal to the particular individual and these messages can be changes according to the individual’s response.
Firstly Aldi can use direct mail, this is where mails are sent directly to specific persons, it is usually customized to appeal to the addressed individual, messages are usually up-to-date and the message can be changed depending on the persons response. In addition when the target market receive direct mails, these individuals feel a sense of importance as letters are addressed to them and regard Aldi as a company that has great consideration for customers. Aldi can also send information through mails informing both repeat and potential customers what they have to offer and also to keep them informed of new products they may received from time to time.
Telemarketing is also another effective market communication method that Aldi could have used in making persons aware of the new offering of Aldi, through information via the telephone where potential customers are made aware of what is on offer, here questions can be answered and you get more realistic feedback.
Information via the internet is becoming more popular within recent times, here Aldi can send newsletters to their customers through e mails informing them what’s on offer, product information, prices and also information to customers that may include new products that Aldi receive.
All these are cost efficient methods of informing individuals what is being offered as it eliminates the wastage of resources and keeps individuals abreast of what is taking place in Aldi.
Publicity according to Kotler (2003, p564) can be defined as “a variety of programs designed to promote or protect a company’s image or it’s products.” Here good relationships are created with the press and other media to assist the organization communicate messages to their customers and the general public.
Sponsorship is part of publicity; it is where events in the arts and sports are commonly used by many organizations, as they finance a local activity in the community. This method is where Aldi can sponsor activities and events, showing the public that the company is interested in the development of the community. For example Aldi can sponsor a local youth football club within the community where mostly the working class children is involved, the segment would say to themselves since Aldi is supporting their kids and the local community they would support Aldi by shopping in their store.
These alternative marketing communication methods discussed above can be seen in Fig. 1.4, where a combination all these methods would prove to be very successful for Aldi. Aldi’s Alternative Marketing Communication Wheel – Fig. 1.4
5. Changes Aldi are Making in the Marketing Mix
The Marketing Mix considers Price, Product, Place, Promotion, Physical Evidence, Packaging, People, Processes, and Profit. The changes Aldi are making in the marketing mix are mainly to attract the target market, i.e. the C1/C2 customers. In order to do so Aldi has made some changes in the elements of the marketing mix as discussed below, all this really ties back with the fact that they want to attract and retain the upmarket customers and also retain their existing customers.
Price is a key in the marketing mix for Aldi, although their intention is to go upmarket and target the C1/C2 customers they have not abandoned their discount philosophy. This is an excellent strategy, as with the changes they are making in the marketing mix Aldi would be ahead of their competitors as their price would be lower as they choose strategies to keep their cost down. In addition to this and as stated in the case Aldi would be offering customers many non-food specials on cleaning, electrical goods and tools.
The products are also important in the marketing mix as Aldi has increased the range of fresh produce from 150 lines five years ago to 240 lines at present. In addition to this the alcohol lines has increased from 20 lines to 33 lines. At Aldi you can get almost anything from plasma TVs to cement mixers. This in itself shows the wide variety and range of products that Aldi is offering its customers.
Aldi is also looking to expand its locations as stated in the case “Rugby is the first of more than 200 stores Aldi plans to develop in the next five years.” By Aldi doing this it really mean that customers have easy access to their stores, they would not have to travel far to shop in an Aldi store. Distribution network is important in the marketing mix as it builds the company’s name in that anywhere you go in the UK you would know of Aldi, what products they offer and their name would continue to grow.
Promotion may no be as important when going upmarket because price is not really matter, however Aldi has insisted that although their target market is the C1/C2 customers they are not abandoning their discount philosophy. This would definitely give them an advantage over their competitors as Tesco and Salisbury will not offer this discount to their market. Aldi can also include in their sales promotion strategy a combination bargain especially those aspirational foods, for example they can offer a combination of two bottles of Pinot Grigio wine and a smoked salmon at a special price. They can have contests whereby every month a customer wins a cruise or a shopping spree at Aldi, all these little promotional strategies add value to the organization.
Physical Evidence is another aspect where Aldi have been working on tremendously, this can be seen by the changes they are making to the store interior and exterior. Aldi is changing the exterior of the building to a more up-to-date structure using more aluminum and glass, they are also adding color and lighting to the interior, increasing the range and variety of products being offered and also better displaying the products by having taller shelves to the perimeter of the building. Aldi has also made the store easier to navigate with clear signage and the wait at the tills is less than before. This truly shows the attempt Aldi is making in trying to going upmarket, as stated in the case when you enter you will be pleasantly surprised and come back for more.
Packaging is an important element in the marketing mix, how your products are packaged will impact on how customers notice your product. Packaging needs to be attractive so that the potential customers can be aware and take notice of the particular product being displayed. All that is mentioned in the case about packaging is that “Aldi has incorporated extended bar codes in the packaging of our own lines.”
The processes in which Aldi carries about its operation is also key. They are customer focused because they are making all these changes to satisfy the customers and make them come back. Customer friendly personnel should be hired so that customers would be satisfied.
People in the organization should possess one culture from the managers to the employees. They should be customer friendly as it is the customers that can make or break any company, not forgetting the main focus is to attract and retain customers and the employees in the company should realize that.
Aldi intends to achieve a doubling of its market share thus increasing its profits by this move upmarket. It is the profit that ensures whether it is fruitful for Aldi to continue and apparently it is because they are increasing the number of new stores, refurbishing existing ones and closing those that do not suit its new image.
In addition to all these elements that Aldi have worked on successfully it is recommended that they should also implement a Public Relations personnel to have them in the media frequently in a positive way so that all the elements they are working on can be highlighted and customers can know what developments Aldi is making to better serve them.
References
Cateora & Graham (2002) International Marketing New York,
McGraw-Hill. 11th edition, 476
Cole (1996) Management Theory & Practice, Letts. Great Britain. 5th edition, 266
Kotler (2003) Marketing Management. Prentice Hall. 11th edition, 564
Bibliography
Cateora, P.R. and Graham, J.L. (2002) International Marketing New York,
McGraw-Hill. 11th edition
Cole, G.A. (1996) Management Theory & Practice, Letts. Great Britain. 5th edition
Kotler, P. (2003) Marketing Management. Prentice Hall. 11th edition
Usunier, Jean-Claude (2000) Marketing Across Cultures, Prentice Hall. 3rd edition
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Sales Promotion: Discount Philosophy
Corporate Identity:
New Design & Layouts
IMPACT OF ALDI’S CAMPAIGN
ALDI
Advertising: Television
Newspapers
Posters
Magazine
Corporate Identity:
New Design & Layouts
Direct Mail
TARGET
C1/C2 CUSTOMERS
ALDI
Advertising: Television
Newspapers
Posters
Magazine
Public Relations
BIGGER AND BETTER SHOPPING
ALDI
ALDI
We cater for everyone’s needs from:
❖ Furniture & Fixtures
❖ Household Items
❖ Latest Wireless Technology
❖ Grocery Items
❖ Clothing & Accessories for all ages
❖ Pharmaceuticals & Cosmetics
❖ Free In Store Sampling
Direct Mail
Publicity
ALDI
Alternative Communication Methods for Aldi
Telemarketing
Sponsorship
The Internet
TABLE OF CONTENTS
Purpose of Aldi’s Campaign 3
Intentions of Aldi’s Campaign 3
Marketing Communication Methods Used By ALDI 4
Aldi’s Integrated Marketing Communication Wheel – Fig. 1.1 4
Segment of Consumer Market Aldi is Seeking to Attract 6
Proposed Integrated Marketing Communication Wheel for Aldi– Fig. 1.2 8
Poster for conveying the essential messages of ALDI’s campaign – Fig. 1.3 9
Alternative Marketing Communication Methods – Aldi 11
Aldi’s Alternative Marketing Communication Wheel – Fig. 1.4 12
Changes Aldi are Making in the Marketing Mix 13
References 16
Bibliography 17 …show more content…
1.
Purpose of Aldi’s Campaign
One of Aldi’s main purposes in their campaign is they want to appeal to middle Britain by refurbishing and building new stores and closing those that does not fit its new image, as it was stated in the case that “hoping customers will be pleasantly surprised and come back for more”.
This new market segment Aldi would be attracting would be partially from their competitors as stated by the regional managing director “Tesco customers are high on the Aldi target list and the new store has been designed with this C1/C2 customer demographic in mind”.
In addition Aldi’s campaign aims at planning on retaining their current customer base with their discount offer and tagline “Spend a Little Live a Lot”.
Another main purpose of Aldi’s campaign is to start getting things right, something that they haven’t been able to do in the past decade.
Transforming the appearance of the displays, by improving the range and quality of the store layout, design and decor.
Intentions of Aldi’s
Campaign
The main intention of Aldi’s campaign is that they hope to target a new market, i.e. the C1/C2 customers, aligned with this is the intention is the fact that Aldi wants to double its present market share from 2.3 %, they can achieve this by taking away some of the customers from their competitors. For example in Trinidad Pricesmart has taken away market share from the other major retailers in the supermarket industry. You would mostly tend to find the higher class of individuals shopping here at Pricesmart; this is the identical objective that Aldi is trying to achieve in the UK.
Updated layout, design and décor would assist Aldi in promoting a new quality image, hoping that the customers would be pleasantly surprised and as a result produce return business. As seen in the case where aspirational and exotic foods are located next to each other as these products complement each other.
Another intention of Aldi’s campaign is to continue with its discounting philosophy so that while the company’s image has improved, loyal customers that make up their present market share would continue to shop at Aldi knowing that they are getting best value for their money’s worth.
In addition main reason for the introduction of the campaign is for Aldi to successfully shift its customer profile as stated in the case “by the increasing number of 4 x 4s in our car parks.” This actually shows that the campaign is showing that the C1/C2 customers are being attracted by Aldi promotional campaign.
Aldi intends to create greater variety for its customers as they have extended their range of fresh produce, increasing the alcohol lines thus giving customers a wide variety of products to choose.
Change the old German philosophy is another intention of Aldi’s campaign where from basic designs, poor locations and branding Aldi has changed the colour, increased the signage, lowered shelving so that products are better displayed and the layout of the store has changed so that customers can easily navigate their way through the store.
Also Aldi intends to create faster turnover at the cashiers by incorporating extended barcodes and as a result this reduces time customers have to wait to pay for their goods.
Marketing Communication Methods Used By ALDI Aldi’s Integrated Marketing Communication Wheel – Fig. 1.1
Aldi used three main marketing communication methods seen in Fig. 1.1. These included Advertising, Corporate Identity and Sales Promotion.
Advertising according to Cole (1996, p266) ‘is the process of communicating persuasive information about a product to target markets by means of the written and spoken word and by visual material.’ The basic framework and concepts of advertising are mainly to perform marketing research, specify the goals of communication, develop the most effective message for the market segment selected, selecting effective media (newspapers, television and outdoor posters), compose and secure a budget, execute the campaign and evaluate the campaign relative to your goals and objectives.
Aldi launched its advertising campaign that included; “an-above-the-line TV campaign complemented by outdoor poster activity and newspaper advertising. Potential customers are being made aware of what Aldi has to offer these customers are targeted in different ways as some may read newspapers only others may only look at television or both the newspaper and television. Another form of advertising undertaken by Aldi is the use of posters that are strategically placed as close to the target market as possible so that they can become aware of Aldi’s new quality image change.
Aldi worked on conquering its target market by changing the design of the store “gone is the dark boxy exterior in favor of glass and aluminum…the stark white interior has been replaced with a warmer beige tone, signage is much clearer, sightlines have been improved…fresh produce ranges have increased, alcohol lines have been extended… the store layout is simple efficient and easy to navigate which keeps prices low”, for example the incorporation of extended barcodes that minimizes delays and ensures a minimum number of customers at the cashiers at any one time. In addition those stores that do not fit the high quality image of Aldi would be closed, Aldi is also looking to expand its outlets to the target market (C1/C2 customers) by either looking to acquire an existing business or purchasing land to set up especially in the south east of the UK.
“Sales Promotions are marketing activities that stimulate consumer purchases and improves middlemen or retailer effectiveness and co-operation” as stated by Cateora & Graham (2002, p476). These are usually short-term efforts directed to the consumer or retailer to achieve such specifics as to induce purchase, trial, etc. Types of sales promotion may include; in store demonstrations, samples, coupons, gifts, discounts, contests, twin pack bargains, point-of purchase displays, etc.
Sales Promotion was also part of Aldi’s marketing communication mix as although their image change to a higher quality one management continued with its discount philosophy. As stated in the case this strategy is a risky one especially when trying to target upmarket customers, however from the example of the Rugby store it is likely to be a success.
In addition Aldi invited ‘The Grocer’ a magazine that carrys information about developments taking place in this retail industry to the opening of its new store in Rugby. This in itself was a vital communication method used by Aldi, now all those who subscribe to ‘The Grocer’ would know all the development that Aldi has undertaken.
2. Segment of Consumer Market Aldi is Seeking to Attract
The segment of the consumer market that Aldi is seeking to attract is the C1/C2 customers and those just above and below them. The ‘class system’ in the UK must be understood here as it indicates the range of individuals and their income and spending patterns. C1 customers are those set of individuals that looks for value for their money and also the best option of potential products before they actually make a purchase. C2 customers consist of the working class people, i.e. individuals who shop around before making their choice. Aldi may also wish to attract customers that are just above and just below this C1/C2 group because some of these individuals may have the identical spending pattern as the C1/C2.
The most effective ways for Aldi to reach this C1/C2 segment is by targeting the potential group and positioning the company strategically. The market here is segmented based on social class, therefore the target is the working class.
Probably the most effective way of reaching this target market is through direct mail. This is where mails are sent directly to specific persons, it is usually customized to appeal to the addressed individual, messages are usually up-to-date and the message can be changed depending on the persons response. Aldi can select its target market and send information through mails informing both repeat and potential customers what they have to offer and also to keep them informed of new products they may received from time to time. This is a cost efficient method of informing individuals what is being offered as it eliminates the wastage of resources. In addition when the target market that includes teachers, nurses etc receive direct emails, these individuals feel a sense of importance as letters are addressed to them and regard Aldi as a company that has great consideration for customers.
Advertising through the different medias such as the television, newspaper and posters is another way in which Aldi can reach their potential market. However this is a more general promotional tool as everyone is being made aware of Aldi and what it has to offer once they see the advertisement. This can work to attract customers who are not really the prime target for Aldi, for example Aldi’s target market is the working class people however because of the large advertisement campaign some customers from the other groups both of higher and lower social class would also purchase items from Aldi.
Improving corporate identity is another way where Aldi has communicated the changes associated with targeting this working class segment of the market. A company’s image is important in attracting customers and Aldi has realized this by changing the basic designs to an updated one with aluminum and glass, changing layouts and displaying products better with more appropriate lighting and in general making the tore easy to navigate that would assist customers in knowing exactly where they can get particular items. This method of marketing communication is a good one because previously the target market would have probably said that because of the image Aldi portrayed it was unattractive but now as this change is made it is appealing to this working class segment of the market.
Public relations or Publicity is another way in which Aldi can attract its target market. This method is where Aldi can sponsor activities and events, showing the public that the company is interested in the development of the community. For example Aldi can sponsor a local youth football club within the community where mostly the working class children is involved, the segment would say to themselves since Aldi is supporting their kids and the local community they would support Aldi by shopping in their store.
These proposed marketing communication elements discussed above, shown in Fig 1.2 are very effective ways for Aldi to reach its segment once it is used properly. Proposed Integrated Marketing Communication Wheel for Aldi– Fig. 1.2
3. Poster for conveying the essential messages of ALDI’s campaign – Fig. 1.3
The poster shows the essential messages of Aldi’s campaign where the main activities stated in the case is displayed with the main objectives to capture the customers awareness, interest, desire, trial and adoption.
The poster invites customers to be aware of the company, how it has developed and in addition what Aldi has to offer customers. The poster indicates that Aldi have created a more customer friendly shopping environment, a wider variety of products in comparison to before, new design and lay out of the displays and some of the products being offered at Aldi.
Its intention is also for customers to reate interset in Aldi, hoping that they would visit the store and be presently surprised.
It also creates desire for customers to want to go and visit Aldi and get all their needs fulfilled in a one-stop shop.
Together with this the poster urges first time customers to come into Aldi and see what they have to offer, customers who shop at the competitors are beng invited to experience bigger and better shopping after this has taken place then they would make Aldi their shopping centre rather than one of the competitors, when they visit Aldi they would now adopt this store as their main centre for shopping.
4. Alternative Marketing Communication Methods - Aldi
There are other marketing communication methods that Aldi could have used such as Direct Marketing which includes direct mail, telemarketing the internet, publicity that includes sponsorship (see Fig. 1.4) besides those indicated such as corporate identity, sales promotion, advertising through television newspapers and posters. These are designed especially to inform the target market of the product being offered and entice them to buy.
Direct Marketing is where the message is communicated directly to the potential buyer. Forms of direct marketing may include, direct mail, telemarketing, Internet marketing. These messages are usually addressed to a specific person and as a result designed to appeal to the particular individual and these messages can be changes according to the individual’s response.
Firstly Aldi can use direct mail, this is where mails are sent directly to specific persons, it is usually customized to appeal to the addressed individual, messages are usually up-to-date and the message can be changed depending on the persons response. In addition when the target market receive direct mails, these individuals feel a sense of importance as letters are addressed to them and regard Aldi as a company that has great consideration for customers. Aldi can also send information through mails informing both repeat and potential customers what they have to offer and also to keep them informed of new products they may received from time to time.
Telemarketing is also another effective market communication method that Aldi could have used in making persons aware of the new offering of Aldi, through information via the telephone where potential customers are made aware of what is on offer, here questions can be answered and you get more realistic feedback.
Information via the internet is becoming more popular within recent times, here Aldi can send newsletters to their customers through e mails informing them what’s on offer, product information, prices and also information to customers that may include new products that Aldi receive.
All these are cost efficient methods of informing individuals what is being offered as it eliminates the wastage of resources and keeps individuals abreast of what is taking place in Aldi.
Publicity according to Kotler (2003, p564) can be defined as “a variety of programs designed to promote or protect a company’s image or it’s products.” Here good relationships are created with the press and other media to assist the organization communicate messages to their customers and the general public.
Sponsorship is part of publicity; it is where events in the arts and sports are commonly used by many organizations, as they finance a local activity in the community. This method is where Aldi can sponsor activities and events, showing the public that the company is interested in the development of the community. For example Aldi can sponsor a local youth football club within the community where mostly the working class children is involved, the segment would say to themselves since Aldi is supporting their kids and the local community they would support Aldi by shopping in their store.
These alternative marketing communication methods discussed above can be seen in Fig. 1.4, where a combination all these methods would prove to be very successful for Aldi. Aldi’s Alternative Marketing Communication Wheel – Fig. 1.4
5. Changes Aldi are Making in the Marketing Mix
The Marketing Mix considers Price, Product, Place, Promotion, Physical Evidence, Packaging, People, Processes, and Profit. The changes Aldi are making in the marketing mix are mainly to attract the target market, i.e. the C1/C2 customers. In order to do so Aldi has made some changes in the elements of the marketing mix as discussed below, all this really ties back with the fact that they want to attract and retain the upmarket customers and also retain their existing customers.
Price is a key in the marketing mix for Aldi, although their intention is to go upmarket and target the C1/C2 customers they have not abandoned their discount philosophy. This is an excellent strategy, as with the changes they are making in the marketing mix Aldi would be ahead of their competitors as their price would be lower as they choose strategies to keep their cost down. In addition to this and as stated in the case Aldi would be offering customers many non-food specials on cleaning, electrical goods and tools.
The products are also important in the marketing mix as Aldi has increased the range of fresh produce from 150 lines five years ago to 240 lines at present. In addition to this the alcohol lines has increased from 20 lines to 33 lines. At Aldi you can get almost anything from plasma TVs to cement mixers. This in itself shows the wide variety and range of products that Aldi is offering its customers.
Aldi is also looking to expand its locations as stated in the case “Rugby is the first of more than 200 stores Aldi plans to develop in the next five years.” By Aldi doing this it really mean that customers have easy access to their stores, they would not have to travel far to shop in an Aldi store. Distribution network is important in the marketing mix as it builds the company’s name in that anywhere you go in the UK you would know of Aldi, what products they offer and their name would continue to grow.
Promotion may no be as important when going upmarket because price is not really matter, however Aldi has insisted that although their target market is the C1/C2 customers they are not abandoning their discount philosophy. This would definitely give them an advantage over their competitors as Tesco and Salisbury will not offer this discount to their market. Aldi can also include in their sales promotion strategy a combination bargain especially those aspirational foods, for example they can offer a combination of two bottles of Pinot Grigio wine and a smoked salmon at a special price. They can have contests whereby every month a customer wins a cruise or a shopping spree at Aldi, all these little promotional strategies add value to the organization.
Physical Evidence is another aspect where Aldi have been working on tremendously, this can be seen by the changes they are making to the store interior and exterior. Aldi is changing the exterior of the building to a more up-to-date structure using more aluminum and glass, they are also adding color and lighting to the interior, increasing the range and variety of products being offered and also better displaying the products by having taller shelves to the perimeter of the building. Aldi has also made the store easier to navigate with clear signage and the wait at the tills is less than before. This truly shows the attempt Aldi is making in trying to going upmarket, as stated in the case when you enter you will be pleasantly surprised and come back for more.
Packaging is an important element in the marketing mix, how your products are packaged will impact on how customers notice your product. Packaging needs to be attractive so that the potential customers can be aware and take notice of the particular product being displayed. All that is mentioned in the case about packaging is that “Aldi has incorporated extended bar codes in the packaging of our own lines.”
The processes in which Aldi carries about its operation is also key. They are customer focused because they are making all these changes to satisfy the customers and make them come back. Customer friendly personnel should be hired so that customers would be satisfied.
People in the organization should possess one culture from the managers to the employees. They should be customer friendly as it is the customers that can make or break any company, not forgetting the main focus is to attract and retain customers and the employees in the company should realize that.
Aldi intends to achieve a doubling of its market share thus increasing its profits by this move upmarket. It is the profit that ensures whether it is fruitful for Aldi to continue and apparently it is because they are increasing the number of new stores, refurbishing existing ones and closing those that do not suit its new image.
In addition to all these elements that Aldi have worked on successfully it is recommended that they should also implement a Public Relations personnel to have them in the media frequently in a positive way so that all the elements they are working on can be highlighted and customers can know what developments Aldi is making to better serve them.
References
Cateora & Graham (2002) International Marketing New York,
McGraw-Hill. 11th edition, 476
Cole (1996) Management Theory & Practice, Letts. Great Britain. 5th edition, 266
Kotler (2003) Marketing Management. Prentice Hall. 11th edition, 564
Bibliography
Cateora, P.R. and Graham, J.L. (2002) International Marketing New York,
McGraw-Hill. 11th edition
Cole, G.A. (1996) Management Theory & Practice, Letts. Great Britain. 5th edition
Kotler, P. (2003) Marketing Management. Prentice Hall. 11th edition
Usunier, Jean-Claude (2000) Marketing Across Cultures, Prentice Hall. 3rd edition
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