This sample will let you know about:
- How can ALDI Supermarket effectively address the threats identified in the TOWS analysis?
- How does the 'Express Ourselves' marketing campaign align with ALDI's marketing objectives and to improve customer experience and market share?
- What are some potential challenges that ALDI ?
Marketing management is specified as a process to implement marketing strategies in order to reach the target customer's of the company (Azhar and et.al., 2019). Marketing management is about to frame the suitable marketing strategies that can effectively convince the target customer's about the desired needs and demands. Marketing management involve analysing, planning, strategy implementation and control over the drafted marketing campaign.
This report is based on the case study of ALDI Supermarket. ALDI Supermarket is a retail organisation established in the year 1913 by Karl and Theo Albrecht. Headquarter of the ALDI group is located in Essen, Germany.
Henceforth, in this report TOWS analysis will be conducted over ALDI supermarket chain. Marketing objectives will also be reported based on the 'Express Ourselves' marketing campaign of ALDI supermarket. This report will also analyse suitable marketing mix plan to efficiently achieving the set objectives of ALDI supermarket. A suitable proposal will be attached based on enhancing customer services.
TOWS analysis of ALDI Supermarket
TWOS analysis is a critical evaluation tool that emphasis over threat, opportunities, weakness and strength of companies. TWOS analysis is more like a variant of SWOT analysis.
ALDI supermarket is facing various threats in the retail sector. Threats of ALDI can also be segregated in the following ways.
Retail sector is among the most competitive sector across the world (Bowen, 2016). Every year new organizations enters in retail market that causes to heavy competition in retail market. Increased competition also drives to separation of target customer base.
Apart from other threats policies framed by government in various countries specially in developing countries like India, China that becomes a huge threat for retail companies at international level. Various changes in tax regimes that also causes to reduced profitability for companies like ALDI in retail sector.
Separation of target customer base is also a huge threat for private companies like ALDI. ALDI is a private limited company and it also looks inefficient to provide total shopping experience to its customer's as company only deals in grocery, households and essentials with only limited number of choices that also create huge threat in term of separation in target customer base for the company.
Inflation in economy's is also a huge threat for retail companies like ALDI. Inflation causes to increased prices of retail products that also resulted into reduced sales and product demands. Inflation is also a huge barrier for retail company's in order to launch new luxury products as it directly influenced the customer's purchasing power.
Opportunities available for ALDI supermarket chain specifies in the following ways.
Retail sector is among the fastest growing sector that carry the market share of approximately 6.4% (Davari Farid and et.al., 2019). Such huge market share of retail sector has provided huge business and growth opportunities for the ALDI supermarket chain. Company can entertain growth and business development opportunities by increasing number of retail outlets across the globe. Enhanced trend of retail store has drastically influenced the customer dependency over retail stores that created an effective growth and business opportunities for ALDI supermarket group.
Economic growth across the world specifically in developing countries like India, China and other developing nations has improved the growth opportunities for the ALDI supermarket group. Developing countries like India is going towards the major infrastructure revolution that also provided opportunities to retail companies in respect to opening retail stores. In recent few years developing countries also witnessed huge economic growth that also enhanced the customer's affordability with the increase of earning packages. All such aspects of economic growth has resulted into improved business opportunities for ALDI group.
Low profitability ratio:
ALDI group has a lower profitability ratio as compare to other competitors like Asda, M&S in retail market. The company is witnessing a market share of almost 8 % that is significantly lower than other competitors in retail market (Dimitrova and Desev, 2018). Profitability and market share is a symbol of company's presence in target market which also look inefficient.
Inefficient financial planning:
Financial planning of ALDI group also look inefficient. Current asset ratio and liquidity ratio of the company indicates that the company management not look sufficient to use its liquidity potential effectively.
Limited product line:
Product line of ALDI company not look dynamic enough to serve its target customer base. The company is more keen towards restricting its product line bases on its culture. Restricted product choices for customers resulted into lower market share for the company as compare to other competitor's like M&S, Asda.
ALDI is among the top brands in retail market that also reflect the strengths of the company.
Strong distribution network:
ALDI is among the top brands in retail sector across the globe and company's strong and potential distribution channel played major role in such a success (HASHIM, 2020). Strong and effective distribution network of the company has enabled the management to reach efficiently all its target customer's. Distribution network also contributed in business expansion for the company across the globe.
Strong Brand Portfolio:
Branding is one of the leading factor work behind company's success at the national and international market. Over the years management of ALDI has strategically invested in its branding that has enhanced the customer's faith in company's products. Strong branding also guided the company to enter into a new market in order to expand its business.
Product quality is among the primary factors work behind the company's success. ALDI company has a strong customer base across the globe and the product quality of company's products played major role in building customer's trust across the globe.
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Marketing objectives is defined as a goal behind framing marketing strategies for the success of company's products. To enhance the customer experience management of ALDI company launched the campaign call 'Express Ourselves'. Objectives that drives the campaign effectively are specified in the following ways.
Improved customer experience: Improved customer experience is among the prime objective worked behind the campaign. Company management launched products under this campaign that can effectively meet the customer's requirements (Kull, Mena and Korschun, 2016). Company management has also focused over improving the quality of products that also improved the customer's satisfaction from company's products. Customer satisfaction play the dominating role in company's presence in the target market. If the customers are satisfied enough it will improve the growth potential for the corporate organization. Company also aimed to enhance the product delivery experience by enabling home delivery services. All such tools used under the campaign has targeted the customer experiences in the target market. Improved customer experience also dominate the company's image in the market. With the launch of this campaign company management has tried to polish the company's image by enhancing the consumer experience. This campaign is launched for the 12 months.
Improve market share: To improve the market share of ALDI company is also among the major objective behind the marketing campaign 'Express Ourselves'. Market share play the huge role while evaluating the company's presence in the target market. Market share is more like an indicator for company's performance in the market. The eye of the company management is totally over improving market share by getting success in the campaign. This campaign is launched for the 12 months and based on the performance analysis further strategies will also be framed to expand the campaign for the longer time. Market share also enable the stakeholders trust in company management decision-making process. To efficiently improve the market share company management has also extended the product line so that management can attract the new customer's. The company management also planned to give discounts under the campaign that effectively attract the trust of such customer's who are loyal towards other brand in retail sector like Asda, M&S.
Enhance customer trust: To improve the customer trust is also among the prime objectives behind the marketing campaign call 'Express Ourselves' of ALDA company. Trust of target customer's play an effectively role behind the company's performance in the target market. Trust of customer's in company's products and brand leads the consumer's to procure company's products and services (Maiyusril, 2018). With the launch of this new campaign company management of ALDA company not just aimed to enhance the trust of existing customer base but company management also tried to generate trust in new customer's with the products and services. Company management also enabled the quality grievance management service in an appropriate time that also leads to improved customer trust in company products and brand.Looking for best assignment services Marketing Assignment Help ? Talk to our experts Now!
All the above mentioned objectives has worked behind the marketing campaign 'Express Ourselves' of ALDA company.
Marketing Mix Plan
Marketing mix is specifies as set of actions or strategies to improve the company's presence in the target market and also to enhance the company's brand image in the target market. Marketing Mix play for the ALDA company will involve various aspects to effectively improve the company's brand image.
Product: Product is an important tool used in marketing mix model. Effectiveness and efficiency of company's products play the huge role behind company's performance in the target market. Retail sector is among the major growing sector across the globe that also provided huge scope to market competition in the sector (Mugo and et.al.,2017). In such a huge competitive environment to survive and grow in the market it is mandatory for company's to sustain the effective products that can efficiency cope up with the requirements of the target customer's. Company management not only focused over improving the product quality of existing products but it also focused over launching new retail products with different features based on the changing requirements of customer's in retail market.
Price: Price is also a crucial aspect of marketing mix model. Price is among the dominating factor work behind the product success in the target market. In recent few years retail sector has achieved major growth because of the increased customer base and product efficiency. IN such a competitive environment customer's carry plenty of efficient options in affordable prices. The company who serve the most affordable price range in the eye of target customer's shines the possibilities of achieving higher growth in the market. While planning for the campaign management of ALDA company also aimed to serve quality products in the most affordable price range in order to achieve the highest customer satisfaction as compare to other competitors in the retail market. The company management is planned to serve the best prices in the market to improve market share by taking competitive advantage in the market.
Place: Place is a crucial aspect of the marketing mix model. With the effective use of this model company management of ALDI will focus over targeting all the potential customer base. To target the customer base effectively company management will focus over launching the marketing campaign 'Express Ourselves' at all the effective marketing platform in all across the globe. All the places will be covered in the world that carry the retail outlets of ALDI company (Paniandi and et.al., 2018). The company will also channelize the local element in its marketing advertisements to attract the customer's. To have the attractive prices company management will channelize three pricing strategies market penetration pricing, market skimming price and neutral pricing. Distribution strategies will also be a part of strategies for place. The company management will focus over distribution strategies like intensive distribution and exclusive distribution.
Promotion: Promotion is a crucial aspect of marketing mix model. Promotion plays the significant role in the success of the campaign of companies. Promotion supports the reach of the campaign in the target customer's. Management of ALDI company has planned to promote the campaign 'Express Ourselves' at all the effective marketing channels and platform. The company will launch the campaign over social media, internet, radio, television, YouTube, holding and other promotional methods for the new campaign. All such mediums will enable the strong reach of target customer for the success of new campaign. The company management will portrait all the strong areas involved in company's products and services like affordable price range, strong customer grievances in its marketing advertisements.
Packaging: Packaging is the fifth element involved in the marketing mix. Packaging play the huge role behind the customer attraction towards company's products. Packaging must be designed in a way that product become memorable for customer's after seeing the product. Packaging of ALDI products is always an attractive tool that work behind the product's success. Management is also planning to use new designs, colours over the product packaging to make products look more attractive and interesting.
Positioning: Positioning is also a crucial aspect of the marketing mix. Positioning play a huge role in product presence in the target market as it made products reachable for the target customer's in the market (Papadas, Avlonitis and Carrigan, 2017). Company will channelize all its distribution channels to effectively position all its products over all retail outlets of ALDI company. Company management has also planned to position the company's products over internet at company's websites so that customer's can place the order's from anywhere in the world. All such tools involved in product positioning will enable the company management to effectively reach the target customer's with product positioning.
People: People is among the major tool behind all marketing and product strategies of the corporate organizations. People is denoted as the target customer's of company's products. All strategies and policies of company's are based on the target people for company's products and services. The company management of ALDI is planning to target all its existing customer's and also to new customer's to improve the market share. Marketing campaign of 'Express Ourselves' will target all customer segment young, old and children's irrespective to all the genders.
All the above tools involved in marketing mix will drive the campaign 'Express Ourselves' of ALDI company effectively. The company will target all its prime objectives under the campaign so that all the business objectives of the company can be achieved efficiency. Strategies use under marketing mix will continue for the next one year. The company management will also enable possible development based on the performance management so that all the company's objectives can be achieved efficiently.
Proposal to improve customer service
Customer service is specifies as the interaction between company's representative and buyer before, during and after the procurement process. Customer service play the major role in building brand image of company in the market (Patil and Bach, 2017). Happy customer is a way to achieve success in the market and customer service is a tool that effectively keep the company's consumer base happy. To improve the customer service company management of ALDI is aiming to channelize some effective marketing strategies.
Social Media Customer Support: Social media customer support is an effective strategy use by the corporate organisations to enhance customer service experience with the use of social media network. To achieve the higher success of the campaign 'Express Ourselves' company management of ALDI is planning to enable social media for the customer service. This strategy will enable the customer's to get resolved all the issues over social media and also to place order's over social media applications like Facebook, Instagram. This is an effective strategy as all target customers are active over social sites and internet and this strategy will also enable the company management to sustain its consumer base for the longer time irrespective of market competition.
Content Creation: Content creation involve sharing all the product information over internet with the help of content. This is an effective strategy that efficiently convey all the details about the products precisely to target customer's over internet (Potipiroon, Srisuthisa-ard and Faerman, 2019). Availability of relative information of products over internet will also enhance the customer service experience. Customer's also get complete detail in respect to competitive edge for using company's products over other products in the retail market. All such aspect of content creation will enhance the customer service experience under the campaign 'Express Ourselves'. This strategy also suits over the campaign title.
Sharing customer stories: Solving customer's grievance is not only the way to improve customer services. Marketing team of the ALDI company will also focus over sharing customer stories over social media handle like Facebook, Instagram of ALDI company and also over company's websites. This is an effective strategy to improve the customer relationship management. This tool will effectively sustain the customer base as this will drive the company management to not only improve the customer satisfaction level but also to project the customer satisfaction over different marketing channels. This strategy will also improve the brand image of ALDI company.
Customer Loyalty Program: Building customer loyalty program is also an effective tool use to improve customer service (Sulaiman and et.al., 2017). This strategy enable the company management to keep engaged with loyal customer's of company. Under this strategy company management will give loyalty bonus on every purchase. Customer's will also get advantages like free shipping from the collected points, quality discounts and other associated benefits like free shipping. This strategy will potentially enhance the customer experience. This is a well efficient strategy to attract new customer's for the company's products.
All such strategical tool will enable the company management to build healthy relationship with target customer's. All such strategies will effective enhance the customer services and consumer satisfaction as well. All such strategies will continue for the next one year.
TOWS analysis has concluded in this report. Various strengths, weaknesses, opportunities and threats has concluded with the guidance of TOWS analysis. Suitable objectives like improve customer experience, improve market share has also concluded in this report for the campaign of the company call Express Ourselves. A suitable marketing mix has also concluded in order to achieve all such objectives involved in Express Ourselves campaign. Various factors like product, place, price has concluded to analyse the campaign with the support of marketing mix. This report has also concluded the ways to achieve higher customer service. This report concludes the strategies like social media customer support, content creation, sharing customer stories and customer loyalty programs. This report has specifically concluded how all such strategies will build an efficient customer service management for the company.
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