Marketing is an important activity of an organisation as it facilitates selling and distributing of products and services into different market places. It is the best way to connect with customers and make them aware about different goods and services company is providing. By manufacturing goods, company can achieve their main target and that is customer satisfaction. marketing departments plays different roles and functions that help company to sell their products into market and attract large number of customers (Kahn, 2014). This marketing term involves different activities of management in which company's items and goods are shifted from manufacturer to market and from their buyer purchase company's items. Marketers also implement innovative ideas that help in encouraging sales and also attract customers. Aldi is one of the leading and discounted supermarket chains that has been operating in more than 20 countries with more than 10,000 stores. It is headquartered in Germany and was founded in 1913. This assignment will cover different roles and responsibilities of marketing functions and their relation with organisational context. Application of marketing mix in marketing plans with a business plan of Aldi is also enlightened in this project.
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P1. Roles and responsibilities of the marketing function of ALDI
There are several key roles that are played by marketing department in order to achieve marketing objectives of the company. As mentioned above, marketing is a key activity that is performed by marketers in order to make company's products and services available to target markets as well as customers. Different procedures are used to market a product such as communication, exchange, delivering and distribution, promotions and advertisements, etc. Marketing helps company to increase their sales and revenues and help establishing a strong position in the market. Marketers of Aldi tries to come up with new plans that can encourage their sales of their products and services (DuBrin, 2011). While developing strategies, marketer implement different marketing functions in order to make their plans more effective and accurate. They take expert advice from their senior or sometimes from experts for better development of plans and procedures. From previous experiences and old marketing plans, marketers get the idea of improvement and areas where they are lacking, so with this they can modify their plans and can formulate better plans to improve their marketing. By identifying different new markets and growing economies, company can expand their business in those areas to increase their profits and revenue. This help them achieving their marketing as well company's objectives in better manner. Aldi's main aim is to satisfy each customers who is coming to their stores. With the help of marketing, company an attract large number of people and also make them aware about the products they sell.
Company invest huge funds while marketing their goods so that their manufactures goods can be preferred by every people. For that managers prepare a proper budget plan which includes all details of marketing plan and how the activities are gonna performed. They also see different and effective distribution channels that will be suitable to distribute their products and services. A company can achieve all its targets is they focuses on marketing of their goods (Ottman, 2017). Following are some roles and responsibilities of marketing functions:
Marketing information management (MIS): There are various activities and functions which performed by the organisation as they focus on collecting informations regarding marketing and manage them properly within organisation. Therefore, they consider modern techniques and methods for appropriate information such as cloud computing and many others. It is effective component where Aldi company gather data related to marketing conditions and use them while making any decision as well as strategies in more efficient way.
Promotions: It is very important component and best element of the marketing that promote any particular goods or services in the market place. It generally support in pre-sale of the item by using number of tools and techniques so that huge audiences can be targeted and reached. Some of tools are magazines, television, social media, internet, newspaper and many print media which increase sales volume by creating better markets awareness. Social media and digital marketing etc. are new modern techniques that less expensive and also very effective.
Selling: This is an important factor of company as their aim is to sell their products into the markets. Aldi have different products and ranges which they sell at reasonable prices to encourage selling by the customers. More the selling, more will be the profits earned by company. Aldi has been operating in many countries with multiple stores and have been famous for their discounted prices and high quality. They claims to provide better quality products as compared to other retailers and that is the main reason why they are gaining so much of profits and popularity. As they are focused towards providing quality products, this help them to build harmonious relationship with their customers and they become loyal to company and prefer them over other retailers.
Distribution: This is defined as the process and activity which support in delivering any goods and services to the target audiences in an effective manner. Marketing department consider distributions channel while making decisions as how products can be delivered to the right customers for satisfying their needs or wants (Hugos, 2018). It must be required to choose effective channel of distributions and take support from any partners who can help in this process.
Pricing: It play crucial role in the organisation as marketing department consider appropriate pricing strategies so that customers can afford and ready to pay willingly for consumption of service and products. It will support in increasing sales volume and generate more profits within the Aldi firm so that competitive advantages can be achieved. As Aldi provides its products in affordable prices, then can attract more customers and this will increase their profits. They uses different pricing strategies which help marketers to set appropriate prices for the products and also provide different offers which can seek the attention of people.
Product and service management: It is another crucial marketing functions that help company by managing all products and services manufactured by them. It is concerned with designing, creating, developing, maintaining and managing a product or services through all stages of their developments. It involves a wide range of operations, marketing and sales related activities (Rowley, 2016). Aldi focuses on each of their products and ensures that quality has not been damaged at any stage whether it is manufacturing, distributing or delivering.
Finance: It is defined as the backbone of the organisation because without funds, a business cannot be implement their business operations. Research department gathers information regarding various elements and components. To obtain important information, company runs different surveys and investigations for which they require appropriate funds and financial support. Aldi firm consider this and provide financial support to promote their products or services and increase sales in the market place. They try to produce several products including home appliances, kitchen items and accessories so they required sufficient funds to manage and maintain quality or quantity of whole products in an effective manner. Their main aim is to reduce maximum costs and in crease products while running an organisation. Therefore, Aldi organisation try to get more outcomes by investing limited funds for generating profits and revenues.
P2. Roles and responsibilities of marketing relate to the wider organisational context
Marketing activities helps company to build a strong position in the market and also help company to attract large number of customers towards their company. Marketing department play an important role in the organisation as they perform number of functions and activities for the purpose of increasing market shares and competing rival companies. Aldi is very precise in using different market functions at the time of strategy formulations. It is a known fact that every organisation have different departments and all of them plays different and crucial roles in order to gain success for the company (Lane, 2016). All departments help marketing department with different resources or informations, with the help of which marketers can develop strong marketing strategy and also promote their products to different new markets. As Aldi is one of the famous brands and has been operating in many countries, this has become possible due to effective management by superiors and employees and strong communication and coordination between different departments. Following are some department and their roles and responsibilities:
Research and Development department: This is a very useful and crucial department as it is responsible for conducting surveys and research related to target market, customers. Competitors, etc. They also analyse different internal as well as external factors that can pose negative as well as positive impact on business operations as well as its profitability. It is important to carry out research and investigations that help in making different strategies and counter plans. Various information are gathered and collected from different sources, mainly primary and secondary sources. There are two types of research methods which can be used by marketers and they are quantitative and qualitative method. They provide necessary information to marketing department so that they can use that information and make strong marketing plans.
Human resource management: This department is concerned with numerous responsibilities and functions which they carry out in order to ensure smooth functioning of the company. Aldi have a strong HR department and is primarily concerned with recruitments and selection procedures. They hire eligible and desired candidates which can fill the vacant position and also help company to increase their profitability and enhance productivity. They provide talented employees to marketing department so they can give innovative ideas and opinions to their superiors while developing different plans. Secondary function is that, they provide marketing department with raw materials and resources that can be utilized at the time of implementation of activities.
Production department: This department is concerned with developing and designing products and ensuring highest quality of products and services. Company have different products lines and they ensures that each products are of highest quality. They set reasonable prices to their products so that customers can easily buy their products. They also ensures that, customers gets their desired products on time (Wolfinbarger and Bush, 2012). This help in building the trust of customers on the company and they become associated with them for longer duration.
Finance department: This department is responsible for providing appropriate funds and financial support to different departments so that they can smoothly carry out their activities and implement their innovations. If company lacks funds then they can take assistance from different financial institutions and investors. They also keep records of company's investments and other essentials like profits and loss statements, balance sheet, ledgers, etc. Company earn revenue by selling their products in markets. With funds, company can also expand their business to growing economies. This will result in more revenue inflowing to the company.
IT and Technical department: This department provides technical support and services to company. It stores all the relevant data related top company's financial transactions, information related to each employee and employer working in the organisation, profit and loss statements, etc. This department provide necessary information to the departments who are in need of information. They ensure that all software on which employees and company are working is up to date and free from any kind of viruses. Company also implements different types of securities and firewalls, that help company in protecting all secret and confidential data from thefts and leaking.
P3. Application of marketing mix into the marketing planning process
There are different ways that is used by marketer in order to make their marketing plans more efficient and strong. Marketing mix and functions are some of the criteria which they consider while formulating marketing strategies (Baines, Fill and Page, 2013). Marketing mix consists of some tools that help company to achieve their marketing goals and objectives. Initially marketing mix includes 4P's and later on, it was extended to 7P's. These were considered as essentials for formulating marketing plans as they provide appropriate directions to marketers. Superiors always try to improve their plans so that they can enhance their sales as well as introduce something new in the market. These helps in making effective strategies for promoting company's goods or services and create strong image among competitors (Blyhte, 2012).
Aldi organisation is one of the best firm who deals in different product ranges. To sell all their products they utilises concept of marketing mix and marketing functions in order to increase their goodwill and brand image in the market. This also help company to achieve competitive advantage over others.
Following is the comparison of marketing mix between two famous brands Aldi and Lidl. They both are dealing in different product lines and have strong hold in the market. They both give tough competition to each other.
Marketing mix tools
This company provide several kinds of products at wider range to people so that they can fulfil different needs, wants and demands of customers in proper manner. The variety of goods provide by ALDI includes fresh goods, bakery, drinks, household, heath & beauty, pet care and whole foods which are mainly considered as key products categories.
The LIDL provides several kinds of goods such as fresh fruits & vegetables, meat, fish, bakery, frozen food, health and beauty products, cleaning and household products, pet food, baby food, baby health care and so on. They observe carefully actual; needs of people and them manufacture correct goods to fulfil exact requirements of consumers in proper way.
This company is usually considered as famous discount provider as it render goods at proper discounted rate as well. It focus on the factor of providing products to customers sat reasonable rates so that every person can afford them along with high quality of features of goods. This will help them to maintain their number of customers and attain better productivity and profitability for long period of time and make sure about growth of company.
The pricing strategy of LIDL is all about to follow the technique of penetration pricing as it indicates criteria of low pricing and more selling so that due to this technique, this firm is known as cheaper then other grocers. This method of low pricing is utilised by this company because their products are private label brands.
They have an effective management of distribution as they carrying out the same procedure in more effective as well as efficient manner to make goods available to customers. ALDI make sure to retain their customers and attract ones also so that they will provide products to desired consumers in correct way so that people will not switch themselves to other brand.
This company has various kinds of of distribution channels along with better number of regional distribution centres which provide support to render required quality of products at correct time across United Kingdom. They have almost 650 stores in UK as well as 10,000 shops in Europe.
There are various kinds of promotional activities which are used by ALDI to get better advantages from them in terms of boosting up number of sale and customer so that profitability of an organisation can be improved in an appropriate manner. Along with this, they also organise several campaigns such as Teenage Cancer Trust to render an accurate services to people which also promote brand effectively.
The is company also prefer several promotional activities and carrying out them in more effective as well as efficient manner to generate better outcomes in order to boost up number of sales and customers to improve profits as in riverside way. They basically utilised integrated promotional campaigns throughout the year on television in many of nations to increase clients.
Aldi has built a very effective and smart store layout which reduces the requirement of employees needed on every floor to assist customers (Perreault, Cannon and McCarthy, 2015). They have very talented staff and can handle several tasks at the same time. They are well trained and dedicated towards their work.
Lidl also employs employees that are talented and qualified and know their duties and responsibilities well. Company offers them quiet attractive salaries to its employees so that they remain motivated and dedicated towards their work. Company also provide necessary training to their employees in order to make them more proficient and talented.
Aldi have easy layout that helps customers to reach to their products for which they are looking for. They have proper segmentations of different ranges of products which makes their shopping more easy and convenient.
It primary process involves buying and selling large quantity of goods at lower prices (Baack, Harris and Baack, 2013). Lidl do not involves customer in any of its procedure or processes.
Aldi has been famous for its simple layout, processes, standardisation, global pricing and operations all round the world. It claims to provide 30% cheaper products as compared to other retail stores and is the only store to maintain same price for groceries across world.
Lidl stores have been following linear and traditional layout design facilitating customers at the time of their purchases. This helps them to find products easily. It utilizes its brand colours in its stores and its surroundings to make it convenient for them to locate it.
The above mentioned factors are all includes in marketing mix in comparative manner. These elements are necessary to be analysed properly to get desired outcomes on regular basis. Various kinds of companies has their own strategies for these components of marketing mix which ensures about profitability of them.
P4. Producing and evaluating a basic marketing plan for ALDI
Marketing plan are necessary for company to carry out their marketing activities and know about the competition in outer world. It also analyse different factors that can influence company's profit and sales (Charles, JOSEPH and CARL, 2011). Every organisation should develop strong and effective marketing plans that can help them achieving all their marketing objectives and targets. As Aldi is one of famous and well reputed plan, marketer are very precise about their plans and strategies. Due to this, they have been a global brand. Following are some elements that are considered while formulating marketing plan:
Vision of Aldi
Their main aim is “ to enable British shopper to live richer lives for less”. Company provides different varieties of products with highest quality so that every customers can afford it.
Mission of Aldi
Company main mission is to provide their customers with different ranges of products at one to with highest quality. With this mission, Aldi is able to fulfil needs and wants of consumers and also satisfy them.
Managers and other key personnel should have clear idea about company's vision and mission and formulate market plan according to that (Baker and Saren, 2016). They can also perform some market research and analysis to identify different threats and opportunities available in the market.
This tools helps in identifying company's strengths, weakness, threats and opportunities. Where, strengths and weakness reflects internal aspect of company and on the other hand, threats and opportunities reflects external aspects of company.
- Aldi have high customer support level as they provides products and services at discounted rate.
- They offers products at affordable prices.
- Operating in more than 20 nations worldwide.
- Have more than 10,000 stores.
- They have low operating costs.
- Strong hold in the markets of Germany.
- Provide high quality goods and services.
- Price edge over various retailers.
- Has low presence globally as compared to other retailers.
- Poor employee satisfaction.
- Have low penetration in high income groups.
- Have low level of advertising.
- Cannot achieve 'complete shopping experience'.
- High level of competition faced by company.
- They face risks associated with suppliers.
- They can invest in advertising and promotions to maintain position in the markets.
- They are capable to out perform big two supermarket of Australia that is Coles and Woolworth.
- They can expand into growing economies like Asia and Africa.
Goals and objectives of Aldi
These are some targets that are prepared by company in order to achieve them in future by performing different business activities (Jones and Rowley, 2011). Aldi is focused towards their objectives and plans according to achieve that as soon as possible.
The major objective of company is to provide best quality products and services to their customers at reasonable prices. They also consider people's demands and wants and act in the direction of fulfilment.
STP of Aldi
Segmentation: This is an effective ways to divide different markets as per requirements and focuses on the market which is crucial for company. Every organisation perform this segmentation in order to know about their target markets and customers. This help in proper achievement of customers requirements. Aldi group is looking out of people to purchase grocery at competitive prices.
Target group: Company is focusing on selling households to customers. This help in targeting customers and markets and can satisfy them in proper manner.
Positioning: Aldi has strong brand image as people can recognise this brand from private labels. It has strong hold in markets of Germany and trying to expand its business in other countries which have growing economies.
Marketing Mix of Aldi
Product: Aldi claims to provide products at reasonable prices that are of same quality as other branded products. They also have other product line such as stationery, fresh fruits and vegetables, household goods, soft tools, clothes, health and beauty products. They focuses on providing highest quality of products to their customers.
Price: Aldi has built strong customer base by providing them products and services at economic prices. Their products are cheaper as compared to other retailer (Fill, 2011). They uses different pricing strategies which help them setting appropriate price of the product. Some of the strategies are given below:
- Market penetration.
- Unit pricing strategy.
- Loss-leader pricing.
- Psychological pricing.
- Competitive pricing.
Place: Aldi has been operating in more than 20 countries with thousands of stores. They keep simple store layout so that customer bear minimum costs. Aldi is supplied with different products in bulk and stores in a warehouse. They ensures that quality of the products is not deteriorated (Babin and Zikmund, 2015). They also minimise waste disposal at the time of transportation of goods. Other than physical stores, they have good presence over internet that facilitates customers to check details of product and easily locate to nearest stores.
Promotion: Aldi is weak when it comes to promotion as they invest very less amount in promotions and advertisements. They offer only 'Super Buys' offers that is available till the stock lasts. They keep on changing their offers and communicate to customers via the means of newsletter that is known as 'Aldi informs' (Campbell and et al, 2013). In countries like UK and US, they use expensive print, electronic and display media to advertise about their stores that help them attracting large number of people towards them. They also promote their products on online media and Email marketing in order to inform all customers about their offers and 'Special buys' and new products.
Marketing strategy: This includes different and innovative market plans that are required to carry out their marketing activities. Marketer should run prior research on target market and consumer in order to analyse factors like, tastes, preferences, market share, competition, prices of products, strategies, etc. This help in formulating effective as well strong strategies that can encourage profits and sales for company (Lilly, 2014). In order to identify competition and about impact of macro factors, company can also use different techniques like, PESTEL Analysis, Porter five force modes, SWOT Analysis as given above, etc. These are effective tools and give accurate ideas about what's going on in external environment.
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From the above report, it can concluded that marketing is a crucial activity which help organisation to grow and expand in different market of countries. With marketing activities, company can provide customers with their products and services. Their aim is to fulfil all needs and desires of customers and build good relations with them over the time. This also facilitates building of loyal relationship between customers and company. Aldi is one of the leading discounted company which offers their products at affordable prices by meeting all quality standards. This is a great marketing strategy as it attract large number of customers towards them and this encourages more selling of goods. They are very focused towards their marketing objectives and perform several research and surveys in order to find actual needs of market as well as customers. This help in achieving overall success and satisfaction to customers.
You may like to read: Unit 17 Company Report Level 5
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