Marketing Mix Critique of Aldi Australia

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4. Marketing Mix – Redesign

4.1 product

Overwhelming consumers visit the store for various purpose. A limited of product range cannot serve some specific customers' demands, resulting purchase items which are not available at Aldi. Gradually, an extensive range of product company (Woolworth, Cole) will absorb those customers into their pocket. The modern market is not like the previous situation, the increasing of demand in consumers require a company to offer more choice to satisfy them. Therefore, it is essential for Aldi to enlarge their product range step by step. Extensive product range provides consumer with a complete shopping experience in store and a willing to consider first when they think about products (Urquhart, 2015). This improvement of a breath of selection will also change the “small” stereotype of Aldi. Moreover, it could add some products along with outside trend. For example, due to a dramatic change in demographic pattern, they could provide some products which are related to satisfying those people who are not born in Australia. Consequently, Aldi will obtain a good impression in those groups at the first place.

4.2 price

Competitive price strategy presents a picture of Aldi concept for consumers. Through this market penetration strategy, Aldi also achieves market share successfully. However, this approach bases on reducing investment on other procedures which is ranging from products to services. As a result, consumers may only consider cheap to label Aldi. To tackle this problem, Aldi could introduce more luxury products, but these products price is lower than its competitors. By this way, some high-income consumers will also enjoy shopping at Aldi. As a result, customers may change their thought from "cheap" to "beneficial".

4.3 promotion

Investment on promotion is much less than its competitors. So for Aldi, the first thing need to improve is invest more on promotion, because as a German brand enter a new market, awareness is essential to generate. Besides, most of the advertisements in Aldi is created for the price comparison ("Only cheap" slogan). The specific target message sometimes confuses their target group, because consumers may not consider price only. So, Aldi could integrate some new features like a “green and fresh”, “useful” into previous advertisements. On one hand, it still reinforces its cheap concept. On the other hand, it makes audiences understand there are more than price benefits. Lastly, development of high technology is an opportunity for them. For example, they could design an advergame as a promotional tool. Through playing advergame, people could receive an electronic coupon to stimulate them to purchase on stores.

4.4 people

Although Aldi's employees are well-trained by systematic methods, there is still some problems. Recruit more people means provide a more satisfying shopping experience to customers. For instance, during peak hour, more staff will process more efficiently so that the clients could save much time. Besides, not all people are familiar with certain products. In this case, enough staff to guide people is also helpful for it to receive positive feedbacks from customers.

5. Recommendations

5.1 Recommendation One

The very first thing to do is to expand their product range. If the breath of products is not appropriate developed, consumers will still consider Aldi is a small company. So, it is time for Aldi to change this image and directly compete with giant retailers like Woolworth and Coles. Moreover, they should use specific products to target sub-group consumers, finally maintain long-term relationships. In product quality, they also need to keep at a very high level, creating benefits to loyal customers.

5.2 Recommendation Two

Aldi requires paying more attention to promotional strategies. This promotion enables company quickly achieve high awareness. At present, consumers have a growing demand to seek more than price. As a result, repeat campaign in cheap may not be effective as it before. They need to involve new elements in consumers' associations like environmental-friendly products, comfortable shopping experience and health diet.

5.3 Recommendation Three

According to Kotler and Armstrong (2010), due to direct interaction between customers and staff, the impression of staff influences association with the brand. So, the people plays a contributor to a company's success. Aldi has already maintained an extraordinary training system. What they need to do is employing its training system to develop more employees in stores. An increasing number of staffs indeed require more cost from Aldi, but its long-term benefits like an efficient shopping and good impression of Aldi could create more value in future.

Reference

Australian Bureau of Statistics. (2013). Information Paper: Measurement of Online Retail Trade in Macroeconomic Statistics, 2013 (cat. no. 8501.0.55.007). Retrieved from http://www.abs.gov.au/ausstats/abs@.nsf/mf/8501.0.55.007

Australian Bureau of Statistics. (2013). Population Projections, Australia, 2012 (base) to 2101 (cat. no. 3222.0). Retrieved from http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/3222.0main+features52012%20(base)%20to%202101

Australian Bureau of Statistics. (2016). Migration, Australia, 2014-15 (cat. no. 3412.0). Retrieved from =

Brandes, D. (2005). Is ALDI really that special? International Commerce Review : ECR Journal, 5(1), 26-37. Retrieved from http://gateway.library.qut.edu.au/login?url=http://search.proquest.com/docview/199561397?accountid=13380

Business expansion through training and development - aldi. (2012). (). London: Business Case Studies LLP. Retrieved from http://gateway.library.qut.edu.au/login?url=http://search.proquest.com/docview/1669830441?accountid=13380

Colgan, P. (2015). CHARTS: Aldi is coming after the supermarket giants. Retrieved from http://www.businessinsider.com.au/aldi-market-share-australia-supermarkets-2015-9

Competitive advantage through efficiency - aldi. (2011). (). London: Business Case Studies LLP. Retrieved from http://gateway.library.qut.edu.au/login?url=http://search.proquest.com/docview/1669466431?accountid=13380

Creating value through the marketing mix - ALDI.