ALDI is a German discount retail chain which has entered the grocery market in Australia since 2001. ALDI provide low prices but high quality groceries to consumers. Although there are two major retail grocery chains which are Woolworths and Coles in Australia, ALDI has becomes another force by its low price products. This critique will analyse both micro and macro marketing environment. It will then demonstrate the current marketing approach of ALDI in Australia and redesign its marketing mix by 7Ps. The last, it will outline several recommendations.
1 Marketing Environment Analysis – Micro Trends
1.1 Trend One: Competitors
A firm need to provide more consumer satisfaction than its competitors if it desires to be …show more content…
2.2 Trend Two: Economic
Consumers’ purchasing power and spending patterns may be affected by the economic factors. As a consequence, the company must pay attention to the spending patterns of customers and main trend (Kotler & Armstrong, 2012, p. 101). Australian economy and levels of expenditure can hold up as well as European and US (Ritson, 2013, para4).
However, after global financial crisis in 2008, the consumers’ purchase pattern was modified. Most people alter their buying behaviour to choose the lower price products even groceries. For this reason, ALDI has become Australians’ new choice for purchasing food and groceries because the price of ALDI is lower than other supermarkets and they provide a variety of brands which are foreign ones or private-label items.
3 Marketing Mix – Evaluation and Critique
3.1 Overview of Current Marketing Approach
ALDI is now recognized as performing the leanest low-cost example in the world. The centre purpose of ALDI is to “provide value and quality to our customers by being fair and efficient in all we do” (ALDI, 2013). ALDI maintain their low cost by reducing profits; moreover, ALDI sale over half of products which are their private label products (Ritson, 2008). For this reason, ALDI capture the greater market share by the private label products or their exclusive brands in Australia (Bailey, 2012, para. 4). ALDI have been