MKT00720 Aldi Australia - Assignment Solution

Introduction

With the ever-growing marketing environment with proposed digital platforms for promotions, mass marketing and new product development, companies need to be constantly relevant and take care of its customers and employees. The strategic approach of an organization paves the path for future possibilities while maintaining and coping with current methods. Aldi serves as one such example for the supermarket industry. With its low rates, efficient supply chain and constant innovation it is able to create a strong brand identity and stable image for itself in the market. Not only has it managed to attract customers from its competitors it has used its strategic cost differentiation approach to survive in the market (Jacenko and Gunasekera, 2005).

The assignment will further focus on Aldi’s history since it had been established in Australia in early 2001 and reflect on its previous strategy in comparison with its current marketing strategies. 

Background to the company

As per Grimmer, (2018) originally, Aldi had been established in the mid-nineties, however they introduced their chain of stores in Australia in 2001 and within a decade managed to cross more than 30 stores. Currently they have over 500 stores in different parts of the country becoming the top 10 most popular and visited stores in Australia. 

They have high power over their suppliers due to their proficient expansion program consisting of efficient distribution channels and logistics creating better employment opportunities in the countries they are present in and also aiding in economic growth (Grimmer, 2018).

Its approach towards cost differentiation has allowed it to be the first choice in the minds of the consumers. They have been advertising this and instilling it in the minds of the consumers, reflecting and having an influence over their purchasing power. 

Sussman, McMahon and Neale, (2019) recently added that the unique features of the store allow it to stand out amongst its customers. It initially may have served a niche but after identifying the latent needs of many customers and potential consumers, it was evident that lower cost triumphs renowned brands, especially when the private label brands that Aldi has in its stores offer the same value and quality. This has also been reflected in one of their campaign’s tagline: ‘Like Brands, but cheaper’.

Marketing Analysis

Azeem, Baker, Villano, et-al, (2019) shared in their journal that high quality at a low cost are two of the main ingredients of Aldi’s marketing techniques and they have been persistent with this strategy since they launched in Australia. They do not invest heavily on TV commercials like its competitors do but have worked upon campaigns where they have promoted their stores and what they are good for. They also have a strategy in place where they introduce products at even lesser prices through their ‘Special Buys’ which change each week, offering industry beating prices. Keeping in consideration the Australian market, following is its target market segmentation: