Student ID Number: 2013346

Report Title: A review of how Aldi UK has used four

of the seven marketing mix elements since 2019.

Module Title: Principles and Practices of Marketing

Module Code: MOD003507

Word Count:

Date: 29/08/2023

Assessment code: 010

Academic Year: 2022/20223

Level: 5

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Table of contents
• Table of content-------------------------------------------------------------------------
3
• Introduction-----------------------------------------------------------------------------4
• Company summary--------------------------------------------------------------------4
• Marketing Mix of Aldi UK-----------------------------------------------------------4
• Segmentation Strategy of Aldi UK--------------------------------------------------
5
• Targeting Strategy of Aldi UK------------------------------------------------------5
• Positioning Strategy of Aldi UK-----------------------------------------------------
5
• Marketing Environment--------------------------------------------------------------6
• Swot Analysis of Aldi UK-------------------------------------------------------------
8
• The 4ps Analysis of Aldi UK---------------------------------------------------------9
Branding-----------------------------------------------------------------------------------9
Model---------------------------------------------------------------------------------------9
• References------------------------------------------------------------------------------12

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Introduction
Due to the continuous competition that now exists in the market, the retail
industry has changed the way it operates over the last few years. When it comes
to buying their daily necessities or daily goods, consumers today have a large
variety of grocery stores to choose from. A retail company aims to achieve its
objectives by finding out what consumers demand and designing products that
meet those demands. For effective promotional activities, it is imperative to
develop a marketing strategy with clear objectives in order to create a
competitive advantage. As a result of these consumer needs, Aldi was
established.
Company Summary
Established in 1913, Aldi is one of the world's largest supermarket chains.
Custom-made products were the company's specialty. As one of the four largest
grocery chains in the U.K. market, Aldi has carved out a niche for itself. Due to
the fact that it provides high quality and value at a lower price, it is very
popular. There are two supermarket chains operated by the Aldi brand: Aldi Sud
and Aldi Nord. Globally, the supermarket has over 10,000 locations in more
than 20 countries. In Austria and Slovenia, Aldi is known as Aldi Hofer. A
number of subsidiaries are affiliated with Aldi, including Aldi Talk (a mobile
networking service), Aldi Liquor (alcohol stores by Aldi) and Diskont (an
Austrian/Slovenian petrol retailer joint venture). As a single organisation, Aldi
was established in 1946. According to Aldi, the brand was split into two parts in
1960. (aldi.co.uk. 2018). At Aldi, Consumers can choose from a wide variety of
products which includes: groceries, meat and fish, eggs, dairy products,
almonds, liquor, organic foods, including spinach, frozen berries, fruits, chips,
cereals, paper products, canned fish and other canned products, and more
(Fuseini et al., 2017)
Marketing Mix of Aldi UK
The marketing mix is a crucial aspect of any campaign to understand how it
affects the target market. It can help identify areas where the company can
improve its effectiveness and develop effective strategies. The goal of the
marketing mix is to reach a wide range of potential customers. It should be
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executed in a way that is both effective and relatable. The aim is to create a
positive brand image that will encourage people to engage with the company. In
addition to helping the company develop effective strategies, the process can
identify areas for improvement. This mix involves segmentation, targeting, and
positioning.

Segmentation Strategy of Aldi UK

Aldi uses a concentrated segmentation approach to target a certain consumer
base and separate itself from other stores. The following is Aldi’s segmentation
strategy:
1. Price-Conscious clients: Aldi primarily targets price-conscious clients
who are searching for value and savings on their food shopping. Aldi bills
itself as a cheap shop, with lower pricing than regular supermarkets. Aldi
is able to provide competitive pricing by keeping operational expenses
low and offering a limited number of product varieties.

2. Quality Seekers: While Aldi focuses on low pricing, it also caters to

clients who want high-quality items. Aldi sells a variety of private-label
brands, allowing them to maintain control and provide items that satisfy
their high quality requirements. They frequently prioritise offering high-
quality services to consumers.

3. Shoppers Who Are Busy: Aldi caters to consumers who seek efficiency
and convenience. The layout of the store is intended to make shopping
simple and effective. Compared to other supermarkets, Aldi often runs
smaller stores, making it easier for consumers to traverse and finish their
shopping fast.

4. Customers who are concerned about their health should know that Aldi
has recently increased the variety of organic, gluten-free, and healthier
food alternatives available in its product line. This approach aims to draw
in clients who are interested in their health and are searching for
reasonably priced alternatives to speciality health stores.
Targeting Strategy of Aldi UK

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A well-known international chain of inexpensive supermarkets called Aldi has
had great success in the UK. The following characteristics best describe Aldi’s
UK targeting strategy:
1. Value for Money: Aldi focuses mostly on clients who are price conscious
and seeking value. They do this by operating on a lean business strategy
and providing a small selection of items, mostly under their own labels.
As a result, they can maintain cheap costs and provide high-quality goods
for a fraction of the cost of competing branded products.
2. Simplicity: Aldi's shops are created to be straightforward and quick to
navigate. In order to save money and time, they often feature a simple
layout with items displayed in their shipping boxes, which appeals to
clients who desire a hassle-free shopping experience.
3. Quality Own-Brand Products: Aldi has made significant investments in
the own-brand goods that carry its name, and several of them have
garnered accolades. This enables them to appeal to a wide range of
consumers, including wealthier customers who value quality yet are
drawn to Aldi's reduced costs.
Aldi also caters to customers who are concerned about the environment and
ethical sourcing. They are dedicated to minimising carbon emissions, cutting
waste, and purchasing goods in an ethical and sustainable way. The importance
of this is rising among many UK customers.(Arup et al., 2017).
Positioning Strategy of Aldi UK
Leading cheap grocery company Aldi UK has used a strong positioning strategy
to set itself apart from competitors. The positioning strategy of Aldi UK
includes the following important components:
1. Obtaining high-quality goods at reasonable costs: Aldi UK markets itself
as a supplier of items with both. This is accomplished by emphasising
cost reductions via effective operations, simplified supply chains, and
constrained product options. Aldi draws shoppers who are aware of their
budget by providing high-quality goods at costs that are lower than those
of conventional supermarkets.
2. Aldi UK places a strong emphasis on its private label brands. To
guarantee that its own brands offer exceptional value for money, the firm
makes investments in product development and quality control. Aldi can
keep control over its product selections and stand out by putting private
labels first.

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 3. An exclusive product selection: In comparison to conventional
supermarkets, Aldi UK provides a smaller selection of goods. The
corporation may concentrate on selling well-liked products, simplify
operations, and improve supplier negotiations using this strategy. Aldi
fosters a sense of exclusivity and encourages customers to constantly
explore its options by carefully selecting a distinctive range of goods.
4. A useful store layout. The majority of the things are offered in their
delivery boxes, and merchandise is exhibited in straightforward,
unadorned aisles. Aldi is able to cut expenses and pass along savings to
customers because to its simple philosophy. Additionally encouraging
quick and pleasant shopping experiences is the effective store layout.

5. Ingenious Advertising and Marketing: The value and quality of Aldi

UK’s products are frequently highlighted in the company’s marketing
efforts. To attract customers and support its brand as a low-cost
supermarket without sacrificing quality, the firm utilises distinctive and
hilarious advertising. In order to highlight the value of its products, Aldi
frequently compares its pricing to those of other stores.
The combination of these tactics has allowed Aldi UK to establish itself as a
speciality retailer that provides high-quality goods at competitive costs. Aldi has
been able to effectively compete with other supermarket chains in the UK by
keeping a strong emphasis on cost reductions, product quality, and consumer
value.
Marketing Environment
In order to meet consumer demands and maintain a long-term relationship with
them, companies need to consider internal and external factors. As well as
identifying strengths and weaknesses, opportunities and risks, firms must also
assess their strengths and weaknesses. No matter what weaknesses they identify,
they should formulate strategies for gaining competitive advantage. (Crane;
2010). In the modern marketing world, the marketing environment is defined as
what influences the organisation's operations. As well as building and
maintaining relationships with customers, it is also about how well a firm can
serve them.
Macro environment:
Among the uncontrollable factors influencing the macro environment are the
following as stated by Kotler (2021):

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  Political: A number of factors contribute to the political process,
including tax policies, fiscal policies, and trade tariffs. There can be
significant effects on business (economic environment) if the government
imposes taxes around the fiscal year. The need to recycle waste will cost
Aldi because they have to operate in an environment with such policies
{Kotler et al., 2022). Besides inspecting the consumable items, they also
conduct periodic inspections on the items being sold to consumers. Food
standards agencies are responsible activities
 Economic Factors: Economic conditions, including GDP growth,
inflation, unemployment rates, and consumer spending patterns, affect
Aldi's marketing environment. During economic downturns, consumers
may become more price-sensitive and seek out discount retailers like
Aldi. Economic factors can influence Aldi's pricing strategies, product
offerings, and promotional activities., (Aldi, 2019). Due to this, many
supermarkets hold a strong market share for their own brand. Due to their
large volume of purchases, Aldi buys all its groceries from a select group
of suppliers at a reduced price. As a result of this strategy, Aldi has
increased its market share from 2.3% to 2.5%.
 Social and Cultural Factors: Changes in societal and cultural trends
impact Aldi's marketing environment. Factors like shifting consumer
lifestyles, health and wellness trends, environmental concerns, and ethical
considerations affect consumer preferences and purchasing decisions.
Aldi needs to adapt its marketing strategies to reflect these evolving
social and cultural factors. Their goal is to reduce the cost of the product
to a very low level so that it is attractive to consumers. (Kotler et al.,
2022)
 Technological Factors: Advances in technology have a significant impact
on the marketing environment of Aldi UK. The growth of e-commerce,
mobile shopping, and digital marketing channels has transformed the
retail industry. Aldi needs to leverage technology effectively to enhance
its online presence, improve customer experience, and stay relevant in a
digitally driven marketplace.
Micro Environment
A micro environment refers to factors that are close to the business and
have an impact on its customers' needs. Among them are customers,
collaborators, competitors, and suppliers (Kotler, 2019).
 Customers: A company's primary goal is to make a profit for its
shareholders, thus maximizing profit through generating value for
customers and ensuring that they pay for the value it offers to them is the

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 aim of every business. (Kotler, 2012). Aldi UK's marketing environment
is influenced by its customer base. Aldi targets price-conscious
consumers who are looking for quality products at affordable prices.
Understanding customer preferences, shopping behaviors, and
demographic factors is crucial for Aldi to develop effective marketing
strategies.
 Competitors: Aldi operates in a highly competitive market in the UK,
with rivals such as Tesco, Sainsbury's, Asda, and Lidl. Monitoring
competitors' pricing, product offerings, promotions, and marketing
strategies is essential for Aldi to maintain its market share and stay ahead
of the competition. As a result, European Union member states have
implemented anti-pollution laws to prevent landfill waste from exceeding
75% of its level in 1995 by 2010. Aldi has responded in this manner by
requiring suppliers to provide ecologically friendly products and using
recyclable packaging.

SWOT Analysis of Aldi UK

Strengths include:
1. Cost Leadership: Aldi UK is known for its low-cost business approach,
which offers low pricing on a wide range of items." Its low-cost
leadership stems from an efficient supply chain, a focus on private
brands, and streamlined processes.(Mortimer & Grimmer, 2018)
2. High-Quality items: Despite its low costs, Aldi UK focuses on providing
high-quality items. It has a reputation for providing good value for money
and has received multiple accolades for the quality of its own-brand
items.
3. Strong Market Position: Aldi UK has a sizable market share in the UK
supermarket industry. them has a broad retail network around the country,
allowing them to access a diverse client base.
Weaknesses include:
1. Limited Product Range: Aldi UK has a smaller product selection than its
competitors. While this helps with cost-cutting, it may limit consumer
alternatives and make it less appealing to buyers looking for a diverse
range of brands and options.
2. Limited name Selection: Because Aldi largely concentrates on its private
label items, it may have less name awareness than competitors that sell
well-known national brands.

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Opportunities include:
1. Increasing Demand for Discount Retailers: Economic uncertainties and
consumer price-consciousness provide chances for Aldi UK to grow its
client base. It may capitalise on the growing need for low-cost grocery
solutions.
2. Online Expansion: As e-commerce grows, Aldi UK has a chance to
develop its online presence and reach a larger audience. Investing in
online ordering, delivery services, and click-and-collect alternatives will
help you gain a larger portion of the market.
Threats include:
1. Intense Competition: The UK food sector is very competitive, with major
businesses such as Tesco, Sainsbury’s, and Asda competing alongside
cheap rivals such as Lidl. Intense rivalry might put Aldi UK’s market
share and profitability under pressure.
2. Price Wars: Price rivalry among retailers can lead to price wars, affecting
Aldi UK’s margins and profitability.
3. Shifting Consumer Preferences: If Aldi UK fails to adapt to changing
consumer preferences, such as growing desire for convenience, online
shopping, or luxury items, it may face difficulties.
The 4Ps Analysis of Aldi UK
To attract and retain customers, marketers apply the 7Ps. A 7Ps strategy
helps you formulate a strategy to gain a share of the market that you
desire.
Promotional Strategy:
To reach its target demographic, Aldi UK relies on low-cost marketing
and promotional initiatives. To raise awareness and promote their value offer,
they rely significantly on print advertising, internet marketing, and social media
involvement. Aldi's marketing efforts frequently highlight their low costs, high-
quality items, and special deals. In order to generate a feeling of urgency and
drive client interaction, they frequently launch seasonal promotions and limited-
time specials. Aldi UK has successfully grown brand recognition and attracted
customers by efficiently utilising numerous marketing methods. It's crucial to
note that while this assessment focuses on four parts of the marketing mix, Aldi
UK also uses additional factors to improve the total customer experience,
including people, process, and physical evidence.(Boyer, et al., 2018).
Branding

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 BRAND EQUITY

BRAND AS BRAND AS AN BRAND SYMBOLS

BRAND PERSON
PRODUCT ORGANISATION

Fig. 2 shows Aaker’s Brand Equity Model on Aldi’s Grocery (Aaker, 1996)
The following components will be examined in relation to Aldi's grocery store
brand value according to Aaker:
Brand as a person
The notion of “brand as a person” refers to a marketing approach in which a
brand is given human features and personality traits in order to build a distinct
identity and connect with consumers. To personify Aldi UK as a brand, it is
seen as trustworthy, efficient, and straightforward. Aldi UK has earned its name
on providing high-quality items at low costs, and its strategy emphasises
simplicity and value. Aldi UK, as a person, would be perceived as realistic,
simple, and driven to serve consumers with the greatest available discounts.
Furthermore, Aldi UK’s branding frequently has a comical and cheerful tone,
with puns and wordplay included into its advertising efforts. This gives the
impression of approachability and friendliness.
Brand as a Product:
When we view Aldi UK as a brand as a product, we may look at its
distinguishing features and products that set it apart from its competitors. Aldi
UK is a budget grocery operator that focuses on offering high-quality items at
low rates. The Aldi UK brand emphasises value for money, efficiency, and
simplicity as a product. One of Aldi UK’s distinguishing traits is its restricted
product range. In contrast to typical supermarkets, which provide a large variety
of brands and goods, Aldi UK concentrates on a smaller selection of well picked
items. This strategy enables companies to streamline their processes, cut
expenses, and pass those savings on to their clients. As a result, the Aldi UK
brand is linked with simplicity and efficiency.
Consequently, Aldi UK places a high value on product quality. While it has a
smaller product selection, it works to guarantee that those products are of great

10
quality. Aldi UK frequently acquires items from both well-known and private-
label brands, providing customers with a mix of established brands and
exclusive offerings. The Aldi UK brand emphasises quality and affordability as
a product. Aldi UK's packaging has a distinct and recognisable look. Its private-
label items frequently have simple and clean packaging designs. This
minimalism is consistent with the brand's reputation of providing value while
eliminating superfluous frills. Overall, the Aldi UK brand is distinguished by its
emphasis on cost, efficiency, quality, and simplicity. These characteristics have
contributed to Furthermore, Aldi UK places a high value on product quality.
While it has a smaller product selection, it works to guarantee that those
products are of great quality. Aldi UK frequently acquires items from both well-
known and private-label brands, providing customers with a mix of established
brands and exclusive offerings. The Aldi UK brand emphasises quality and
affordability as a product.
Overall, the Aldi UK brand is distinguished by its emphasis on cost, efficiency,
quality, and simplicity. These characteristics have contributed to its success and
popularity among consumers in the UK.

Brand as an organisation
When examining Aldi UK as a brand as an organisation, we may study its
general structure, values, and operational practises that define its identity and
reputation. Aldi UK is a well-organized and cost-conscious company. Through
a lean organisation and efficient supply chain, it focuses on delivering high-
quality products at reasonable rates. The company's organisational culture is
shaped by its concentration on private-label products and devotion to simplicity
and efficiency. Overall, Aldi UK is well-known for its value-driven approach
and reputation as a low-cost grocery business.
Brand as a symbol
Brand symbols provide structure and cohesion to an identity, making
recognition and recall much easier. The status of symbols as part of an identity
reflects their potential power. Technology simplifies things for consumers.
Aldi's products have been a success in simplifying the quality of products to
satisfy customers. Aldi UK’s brand symbols include a lowercase logo with a

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blue background, a blue color scheme, the slogan “Like Brands. Only Cheaper,”
and occasionally, a smiling face symbol known as the “Aldi smile.”
Product strategy
Aldi UK employs a distinct product strategy that focuses on providing high-
quality products at affordable prices. Here are some key aspects of Aldi UK's
product strategy:
1. Private Label items: The majority of Aldi UK's offerings are private label
items, which are products made expressly for the Aldi brand. Aldi UK
can provide its products at reduced rates while keeping quality standards
by removing intermediaries and working directly with sup supplier
2. Restricted Assortment: Aldi UK employs a restricted assortment strategy,
delivering a carefully chosen range of items from a variety of categories.
This strategy enables efficient retail operations and cost savings, which
are passed on to customers in the form of cheaper pricing.
3. Streamlined Packaging: Aldi UK frequently uses streamlined packaging
designs to save extra packaging and expenses. This strategy is consistent
with the brand's commitment to sustainability and aids in keeping pricing
competitive.
4. Quality is emphasised: Despite its emphasis on price, Aldi UK places a
great priority on product quality. To guarantee that its goods meet or
exceed industry standards, the firm undertakes rigorous quality testing
and collaborates closely with suppliers.
5. Special Buys: Aldi UK runs "Special Buys" or "Aisle of Aldi"
promotions on a regular basis, where it provides a limited-time selection
of unique or seasonal items at affordable rates. These promotions
generate enthusiasm and encourage people to try new things.
Consequently, Aldi UK focuses on providing a limited range of high-quality,
affordable products. They primarily offer their own Private-label brands, which
allows them to maintain control over pricing and quality. Aldi’s product
assortment includes both food and non-food items, with an emphasis on fresh
produce, dairy, and pantry staples. By offering a curated selection of products at
competitive prices, Aldi UK has successfully appealed to cost-conscious
consumers.
Price strategy:
Despite its low product prices, Aldi uses an innovative strategy to adjust them,
according to the report of Aldi authority. Although, in recent times it is not
possible to reduce the organization expenses and offer products at low prices to

12
consumers. Because the organization management must invest in a variety of
areas, which ultimately results in an increase in the price of its products.As its
primary strategy is penetration pricing, Aldi's organizational management
adjusts its other expenses in order to adjust the product price. By using this
strategy, Aldi has forced suppliers to offer the lowest price possible due to the
high volume purchases Aldi has made from them. As a result, the savings made
by purchasing goods at a reduced price are passed on to consumers by lowering
the price (Times 2013).
Aldi UK also has a pricing strategy that focuses on providing consumers with
competitive prices on a wide selection of items. The following are some
significant features of Aldi UK’s pricing strategy:
1. Special Buys and Weekly Deals: Aldi UK provides special promotions
and weekly deals on a variety of items. Customers benefit from these
limited-time offers and discounts by receiving additional savings and
being encouraged to take advantage of value-driven possibilities.
2. Price Comparison: Aldi UK emphasises price comparison, frequently
emphasising its competitive pricing in contrast to other stores. This
strategy is intended to highlight the value and affordability that Aldi UK
provides to its consumers.

Models and theories that could be relevant to Aldi UK marketing mix:

Product Life Cycle (PLC):
According to the PLC model, goods go through many stages of life, including
introduction, growth, maturity, and decline. This model might be used by Aldi
UK to analyse the product life cycle and make educated decisions about product
development, price, promotion, and distribution strategies at each step.
Integrated Marketing Communications (IMC):
Aldi UK may employ an integrated marketing communications (IMC) approach
to synchronize and unify their communication channels, such as advertising,
public relations, sales promotion, direct marketing, and personal selling. By
doing so, they can effectively convey a cohesive brand message that reinforces
their unique value proposition.
Relationship Marketing:
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The strategy of relationship marketing prioritizes the establishment of enduring
connections with customers through an emphasis on their contentment,
allegiance, and continued patronage. Aldi UK could potentially employ this
method by creating loyalty initiatives, personalized incentives, and exceptional
service to cultivate customer loyalty and stimulate recurrent buying behavior.

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Crane, A., 2000. Marketing and the natural environment. What role for
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Duan, Y., Mao, Z., & Huo, J. 2020. Introduction of Store Brands Considering
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