Evaluation of ALDI’s Marketing Performance

By: aakinyem@deakin.edu.au

Aldi, Stratford Upon Avon. 12th September 2014. Aldi General Managers Matthew Barnes and Roman Heini.

Their Approach

It’s been said that although every firm has a marketing strategy, unfortunately, many are ineffective and guarantee failure (Geoffrey 2013). While many businesses still fail today, ALDI represents one of the exception who has mastered the act of healthy business. The German company understand quite well the subject of consumer behavior and how to translate this into prosperity. For an organization to be successful in this ever changing contemporary business landscape, it has to find out what the customers are interested in and work out how to satisfy this needs (BCS 2016).

aldi - Copy (2)

Since ALDI’s first opened in Germany, 1913, it has established itself as a successful retailer in global business offering great value and quality (BCS 2016). Their strategic aim is centered on providing products of highest possible quality at guaranteed low prices (BCS 2016). Although the company do not actively advertise on mass media so as to focus on price and quality, however, they engage in promotions on televisions, radio, magazines and newspapers (Pauly 2014).

 

Marketing Metrics

Metrics

Knowing whether or not a company’s marketing effort is doing well or not calls into the  consideration of some important parameters for careful analysis. And also, according to Robert 2016, marketing activities should not be fixed or let alone but constantly evaluated, reviewed and adjusted to suit the needs of the customers and company. The metrics used to measure marketing effectiveness includes ROI that measures marketing money put into a marketing plan versus the resulted profit, others include Sales numbers, Customer Response/Feedback and Competitor response (Robert 2016).

Competitor response is a situation where a competitor rush to copy what you have done meaning your initiative is working (Robert 2016). However according to Geoffrey 2013, while stressing the generation of sales, an evaluation of a marketing strategy must involve good pointers such as:

  • Strategic rather than tactical
  • Measurable
  • Clearly articulated
  • Achievable rather than inspirational (Geoffrey 2013).

 

Key Performance Indicators

With reference to the metrics above, it can be summarized that performance can be measured from different angles ranging from financial, behavioral, mental, or customer’s opinion depending on which one chooses to focus on. It is often better not to look at only one parameter in making a judgement but to look at two or more indicators simultaneously.ALDI FOOD

ALDI was said to be the brand setter over the past decade (Andrea 2015). Remarkably, Professor Samuel points out that Australian superstores players; Coles, Woolworths, IGA’S initially operated very lower quality brand products, but has learnt lessons from ALDI on better quality (Andrea 2015).SupermarketSweepIt can be said that there is no other company obsessed with customer market share than ALDI (Pauly 2014). The company is said to have quadrupled its overall customer base in the last 8 years from 1 million to 4.2 million representing 2.9 percent in 2005 to a rise to 10.3 percent in December 2013(Pauly 2014). With 3000 stores in Germany, it is said that 70percent of Germans shop at ALDI (Pauly 2014). It has opened about 1220 stores in over 30 states in the US and many more across Europe and Australia (Pauly 2014).

NEW STORE

ALDI’s one-of-a-kind pricing initiative has made its product prices similar all over the world, resulting in a remarkable 30% cheaper products globally (Pauly 2014). While the first store in Australia opened in 2001, they now have over 400 stores across New South Wales, ACT, Victoria, Queensland and increasing figures (ALDI 2016). They have recently announced more expansion into South Australia beginning from February 2016 and later in the year to follow is Western Australia (ALDI 2016).

According to Professor Samuel Graeme of Monash University Business School, ALDI has been successful: praising their growing expansion, he added that their strategy of stand-alone-sites, which the company prefers, avoids them the high fees of location in shopping complex (Andrea 2015).

 

REFERENCES

ALDI, 2016, the ALDI Story. Online resource, retrieved May 20 2016. < https://corporate.aldi.com.au/en/about-aldi/>

Andrea H, 2015, AldI Tries New Strategy to Grow Bigger Market Share in Australia. Online resource, retrieved May 20 2016. < http://ausfoodnews.com.au/2015/05/20/aldi-tries-new-strategy-to-grow-bigger-market-share-in-australia.html>

Business Case studies. 2016, Online resource, retrieved May 20 2016. <http://businesscasestudies.co.uk/aldi/creating-value-through-the-marketing-mix/introduction.html#axzz49Dj0oeTe>

Geoffrey J, 2013, How to Evaluate a Market Strategy. Online resource, retrieved May 20 2016. < http://www.inc.com/geoffrey-james/how-to-evaluate-a-market-strategy.html>

Google Pictures.

Pauly M 2014, Marketing Practices and Strategies for ALDI; Introduction of ALDI. Online resource, retrieved May 20 2016. < http://www.slideshare.net/paulmuston3/aldi-marketing>

Robert M, 2016, 7 Ways to Evaluate Your Marketing Plan. Online resource, retrieved May 20 2016. <http://smallbusiness.chron.com/7-ways-evaluate-marketing-plan-58331.html>

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