Introduction
Marketing is an organizational function that entails a set of processes for communicating, creating, implementing and delivering value to customers. It helps to manage customer-business relationships in a way that will benefit both the organization and the stakeholders involved. Such processes succeed in moving people closer to making a decision to purchase and facilitate a sale. Marketing communication is a very essential aspect of any business organization. (Kitchen, 1997)
This paper looks at Aldi’s case study. It identifies the market segments that Aldi is operating in. It also focuses on the current and potential marketing communication channels used by Aldi to reach its target customers. There is also a competitor analysis of the channels.
The paper also explains the benefits that Aldi might accrue from developing a website. This includes strategies on how Aldi can drive traffic to the website. Finally, opportunities for reciprocal listings and other marketing communication strategies are included in this paper. (Belch, 2004)
Aldi market segments
According to Kitchen (1997), market segmentation is an imperative aspect in any business. This is considering the fact that the chosen segment always determines the growth and accrual of profits within the organization. An analysis of Aldi stores shows that it has had local market segments. This is whereby its products are sold in the local market. This is clearly indicated by the marketing communication strategies that the organization has been involved in. Aldi’s strategies were not targeting a wider global population. (Kitchen, 1997)
It has not been venturing into international market segments. Another aspect of Aldi’s market segments entails low income people. This is clearly illustrated in its pricing strategies. From the case study, it is quite evident that Aldi’s products have been having low prices. This definitely indicates that the store has not been targeting the affluent segment of the society. This is also indicated in the image that the store has been having. This is in line with the exterior and the interior aspects of the business premises. (Lages and Filipe, 2004)
Marketing communication channels
It is quite clear that Aldi’s current marketing communications strategies also include television advertisement. This through what the organization refers to as television campaign. (Kitchen, 1999)
Through this, the organization will be in a position to market its products to a wider population within the United Kingdom. This is one of the marketing communication strategies that are quite effective since many people watch their television sets virtually every day.
Other marketing communication strategies noted are newspaper adverts and posters. Through these two channels, potential customers are also informed of the organisation’s products. It is however worth noting that sometimes newspapers can only reach out to a narrow market segment. (Dan, 2003)
This is considering the fact that there are so many newspapers in the current market and customers don’t buy all newspapers while some do not buy them at all or even don’t bother to read them. Posters are a good way of marketing especially when they are strategically placed. The key objective of these communication tools is to increase the organization’s customer base. (Lages and Filipe, 2004)
This is also geared towards profit maximization within the organization. An overall analysis of Aldi’s operations shows that it has various marketing communication channels. One of its current marketing communication channels entails refurbishing its existing stores. This is also evident in the plans to update all its new stores such they become more customer-friendly. This also includes the aspects of re-branding its stores. (Kitchen, 1999)
In this case, the organization is trying to improve its image and communicate to its customers about improved products and services. This is an essential avenue of marketing communication as customers tend to judge an organization’s products based on the Company’s overall image. This is actually aimed at luring more customers to try the organization’s products.
Another marketing communication strategy in Aldi entails the use of discounts on its purchased products. This is aimed at retaining its customers and also enticing customers to buy more products from the stores. This is considering the fact that the more the customers buy, the more the discounts on the purchased goods. (Lages and Filipe, 2004)
Competitor analysis
Each and every business has its competitors. In this case, Aldi stores also have various competitors in the market. They include Tesco and Sainsbury superstores. An analysis of marketing communication channels within these organizations shows that they are up to date. These to superstores carry out their marketing communications through various ways. This includes through television and radio advertisements. (East, 1997)
This enables them to reach a very wide population within United Kingdom. The two are also known for carry out their marketing communications through posters.
This are strategically placed in city centres in attractive colours. One of the most essential communication marketing strategies that the two have incorporated is online marketing. The two organizations have websites where they market their products. This therefore indicates that they do not just target customers within United Kingdom but also those within the global market.
Aldi’s benefits from developing a website
One of the best marketing communication strategies in the twenty first century entails online marketing. E-marketing is relatively a new advancement in the field of marketing even though there are many business and customers who have switched from traditional to online marketing. This necessitates that Aldi opens a company website. There are various benefits that the organization will accrue from developing a website. One of the benefits includes reaching out to a wider market segment. (Kitchen, 1997)
This is considering that through the website, potential customers across the globe will be in a position to access it. This shows that it does not have geographical limitations. This website will also enable Aldi to increase its sales. This is bearing in mind that customers will be in a position to order for products online without necessarily having to travel to the premises.
According to Kitchen (1997), this is also a much cheaper way of marketing as compared to other strategies such marketing through television and the use of posters. Having a website will also enable Aldi stores to cut down on costs. This is especially the costs that are associated with employing professional personnel in the marketing department.
Marketing responsibilities which could have otherwise been done by many marketers can be done by one employee. This therefore saves on the cost of paying salaries to many people within the organization. (Kitchen, 1997)
The other advantage that Aldi will definitely have relates to convenience associated with marketing through a Company website. Through the use of a website, Aldi will definitely enjoy the benefits of flexibility of time spent on marketing communication. This time will be used to carry out other duties within the organization.
Strategies to drive traffic to Aldi’s website
It is very essential that Aldi puts in place strategies that will help to drive traffic to its website. One of the strategies that Aldi can have is by writing its website on the receipts given to customers after they purchase their products. Since the organization also uses television adverts, it can advise potential customers to visit its website for more information. Through this many of its customers and potential customers will start using Aldi’s website.
Another strategy that can help Aldi to drive traffic to Aldi’s website includes marketing through yahoo, gmail and google URLs. This is by having pop ups as people access their mails. Through this, various people will be able to see the website as they access their emails. This definitely will make many people to start accessing the company website. (Hart, 1995)
The organization can also take the initiative of communicating to various stakeholders through its Company website. This includes its suppliers and customers. Through this, the marketing team will drive traffic to Aldi’s website. Traffic can also be driven to the Company’s website through reciprocal listings as indicated below.
Opportunities for reciprocal listings
Aldi stores can use reciprocal listings to create traffic to its website. Through this custom messages and requests will be automatically sent to diverse theme sites that are normally stored in a database. Through this, Aldi can make any announcements to the wider population concerning its Company website. This of course spurs interest in the recipients who take steps of visiting the advertised website. (Blythe, 1997)
Through this, reciprocal listings definitely drive the specifically targeted traffic to the website. Research has also shown that web listings help to increase the overall popularity of a website and in the long run there are increased sales. It is highly recommended therefore that Aldi creates a partners page that will play an essential role in enhancing traffic to its website. (Willis, 2009)
Suggestions for other products or services
In order to enhance Aldi’s business it is essential that it increases its products and services. One of the most essential services that Aldi can get involved in includes cyber cafe within its premises. This is considering the fact that many people use the internet on a day to day basis. This is for both personal and business purposes. Through this, Aldi will improve its customer base since as customers seek for internet services, they will also purchase products within the store. (Rimini, 2003)
Other products that this store needs to be involved in include wooden furniture. This should be for both home and office. Aldi needs to find suppliers of quality furniture and ensure that there is a constant stock of the same. This should mostly be of wooden materials since many customers prefer them. Many customers are always on the look out for leather furniture and these should also be stocked in large quantities. (Kumar and Morris, 2007)
This will help the store to greatly increase its customer base. This is considering the fact that furniture is always needed in offices as new businesses are started and also to replace old ones. Aldi should also seek to fill the gap that pertains to all household products. This is ranging from cutlery, foodstuffs such as sugar, flour etc. (Fill, 2005)
Aldi can also increase its product line by ensuring there are items such as a variety of footwear stocked in its stores. There is need to include stationery such as writing materials and books on various topics. This should also include current magazines and newspapers that are usually sourced for by thousands of readers each single day. (Fill, 2005)
Communicated to the target market
Aldi stores need to take the initiative to communicate its new products and services to its target market. This should be done through online advertisements on the Company website. This can be done by having the photos of products such as furniture displayed on the website. Through this, the targeted customers will get to know of the new products in Aldi. (Lages and Filipe, 2004)
It would also be essential that Aldi communicates to its target market about its new products through television adverts. This should be done in such a way that the products are displayed to the viewers. Through this, the store’s target customers would be able to know of its new products. (Nilson, 1992)
Another way through which Aldi can inform its target customers of new products is through radio adverts. This should be done at specific hours when the target customers are mostly listening to the radios. For instance, these advertisements need to be aired just before news when many people tune in to listen. Through this, Aldi will reach out to wider population. This is considering the fact that majority of target customers tune in even in their offices via their mobile phones etc. (Kumar and Morris, 2007)
Opportunities for Customer Relationship Marketing
Aldi needs to make use of various opportunities in line with customer relationship marketing. This should be initiated by carrying out research on customers expectations from Aldi. This can be done through marketing communication channels such as Company website. (Kumar and Morris, 2007)
This is where customers can easily fill forms online on their expectations. These ideas can then be incorporated in the store’s product lines. Coupons for marketing can also have a space where customer fill in their expectations and drop them in one of the stores. This will enhance customers’ relationship with the business. (Neumann, 2002)
The marketing department should give customers contacts that they can call any time within working hours to confirm on various issues pertaining to the business. This will definitely enhance the store’s relationship with its customers. Through these strategies, Aldi will be able to maintain its loyal customers and also attract potential customers in the target market.
Conclusion
In conclusion, Aldi store’s current market segments entail the local market and the low income customers. This organization is using various marketing communication channels. These include television adverts, use of posters, improving Company image and newspaper adverts etc. Its competitors use up to date marketing communication channels such as online adverts.
Developing a website would help Aldi to increase its customer base, save time and finances. Aldi can drive traffic to its website through reciprocal listings. There is need for increasing its product line and carry out customer relationship marketing. This will help it to succeed despite the tough competition in the market.
Reference
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