The current assignment is an analysis of the elements of the marketing mix (product, place, price, and promotion). ALDI is the chosen organization for the examination in which an explanation of the four elements of the marketing mix will take place. Details on how the marketing mix affects the development of ALDI’s marketing strategy and tactics and a description of how each element is executed within its industry will also take place. The Elements of the Marketing Mix
Marketing mix has different types of variables attached to it such as diverse and flexible ways to advertise, marketing on the Internet, or the sales strategy within the organization. To simplify these different types of variables, the organization can apply the four basic marketing mix known as the four p’s: 1. Product – The good or service for the target need such as benefits, branding, physical goods, services 2. Place –Reaching the target such by using kinds and locations of stores, channel type, transporting, and storage 3. Promotion – Telling and selling the customer by using sales, salespeople, publicity, and advertising. 4. Price – Making it right through strategizing with allowances, flexibility, discount, and geographic (Perrault, Cannon, & McCarthy, 2011). In the middle of the marketing mix is the customer; however, the customer is not part of the marketing mix because the customer is the target market.
ALDI is a food chain that specializes in products at discount prices. The chains sell inexpensive household items such as food, beverages, sanitary articles, and other items. They also offer specials on more expensive products such as electric appliances or computers; this is what makes ALDI more than the average every day store. ALDI’s establishment took place in Germany in 1913 on the outlook that people should have the chance to purchase the highest quality groceries at the lowest prices. Millions of shoppers around the world are customers of ALDI’s, which started as a casual and modest discount store. ALDI is the forerunner serving Europe, Australia, and USA. According to TNS Global, 2009, ALDI is the 9th largest grocery retailer in Europe by sales volume and currently holds 1% of the Ukrainian market share (“Slideshare,” 2010). ALDI’s strategy is to streamline the processes, use the select brand strategy, and reliability with double guarantee principles on product assortment. This strategy has made it impossible for competitors to match the widespread appeal of ALDI. With more than 1,000 stores in the United States, consumers of every persuasion are enjoying up to 50% savings on 90% of their weekly shopping needs—honest to goodness savings (“ALDI,” 2012). ALDI and the Four Elements of the Marketing Mix
ALDI‘s target market are the consumers who have a concern about price, more than the quality of the product. ALDI has an understanding about the consumer needs, and the consumer will choose carefully before he or she decides to use the service or purchase the product. ALDI has its own branded label, which enable ALDI to control their production process and cost. ALDI’s nonfood items may include musical instruments, electronics, toilets, and scuba diving equipment. As ALDI set goals to provide a service to sell convenience goods, the concerns regarding packaging, design, durability, and branding had a role with quality production. The warranty in ALDI’s products is applied to nonfood items; however, the customer service applies customer care to food items. Price
Distribution is a process that emulates a price strategy from the retailer. ALDI has the power to set the price high over the supplier’s price as ALDI make purchases in extensive quantities for stores throughout the country. The larger quantity delivers better bargains. The bargaining power strategy enables ALDI to sell at a low price, which promote ALDI to achieve Potential Cost Leadership Status and economic scale (“Slideshare,” 2010). Another tool that assists with lower prices is the purchase of one item per line, which set customers purchase limitations. Place
Physical location, communication channels, opening hours, and distribution channels are the elements for place in the marketing mix. ALDI’s has physical presence within the communities in the structure of their store within a physical building; however, ALDI also have an online presence throughout Europe. The online service is a marketing channel, which give customers the opportunity to research product for purchase at an ALDI that is nearby.
When marketing a product, promotion educate the consumers of new products, it promotes a sense of identity and creates a brand image Promotion gives structure to other marketing decisions such as a reduction in price. Promotion enhances ALDI’s in its sales growth as it communicates to consumers with the aim of selling products. In Europe, ALDI’s has an online website for the sole purpose of marketing its products. In the United States, ALDI use print fliers, some radio, and TV for its promotions.
ALDI. (2012). Retrieved from http://aldi.us/us/html/company/about_aldi_ENU_HTML.htm authorSTREAM. (2002-2012). Retrieved from http://www.authorstream.com/Presentation/juliapeters-947580-gcse-business-unit-2-chapter-7-marketing Perrault, W. D., Cannon, J.P., & McCarthy, J. (2011). Basic Marketing. A Marketing Strategy Planning Approach, 18th edition [University of Phoenix Custom Edition eBook]. : McGraw Hill Company. Retrieved from University of Phoenix, MKT 421 website. Slideshare. (2010). Retrieved from http://ccnstandrews/customer-marketing-assignment