Marketing mix of Aldi (4Ps of Aldi)
This is a detailed analysis of the marketing mix of Aldi. It aims to examine the 4Ps i.e. product, price, place, promotion strategies of Aldi. Aldi is a German discount supermarket chain that has operations in many countries around the world. It is headquartered in Essen, Germany.
Marketing mix of Aldi (4Ps of Aldi)
Products of Aldi
Aldi offers customers a wide range of products. Fresh food, bakery, drinks, household, health & beauty, pet care, and whole foods are some of the key product categories in Aldi. The company sells a very good number of its own private label brands. It claims to work with the very best suppliers to deliver the very best products for its customers (Aldi Stores Limited, 2020). However, some customers complain that the fresh fruit and vegetable selection at Aldi can sometimes be very dull. Often fruits are overripe that can become inedible very quickly.
Price and pricing strategies of Aldi
Aldi is famous as a discounter. It sells products that are both great value and high quality (Aldi Stores Limited, 2020). It has a very strong loyal customer base as well. A combination of both cheap price and quality of the products has helped the company achieve customer loyalty. However, it is worth mentioning not all products are cheaper in Aldi compared to those of its competitors such as Tesco, ASDA, and Lidl.
Aldi makes use of a number of pricing strategies. For example, it often uses psychological pricing. So, it prices many of its products in an intelligent fashion such as £2.99, instead of £3.00. This difference of £0.1 pence often impacts positively on customer psychology and decision-making. In addition to psychological pricing, Aldi also uses competitive pricing technique. It usually offers lower prices than its competitors, while ensuring that the quality of the products is not compromised.
Place/distribution channels of Aldi
Place usually refers to where the products of the company are available for customers to purchase. Aldi has thousands of stores in 19 countries around the world. It has over 840 stores in the UK and more than 1,900 stores across 35 states in the USA (Simpson, 2019). In Germany, it has over 4100 stores.
Customers can visit their nearest Aldi store or shop online. Aldi delivers products to most postal areas in mainland UK, and interestingly, there is no minimum spending requirement for delivery. Customers can also select CollectPlus as a delivery option and collect their order from a selected collection point in the UK within 3-5 working days of their order being processed.
Promotion strategies of Aldi
Aldi makes use of a number of promotional methods e.g. advertising, public relations, and sales promotions. It often advertises on TV and newspapers to reach out to the customers, particularly, the US, UK and Australian markets. It also uses PR and has initiated a number projects concerning corporate social responsibility. For example, in the UK, Aldi works with Teenage Cancer Trust to ‘ensure no young person faces cancer alone’ (Aldi Stores Limited, 2020). Aldi also uses sales promotions regularly. For example, it often cut prices of many of its products.
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Last update: 11 January 2020
Aldi Stores Limited (2020) Award-Winning Aldi Quality, available at https://www.aldi.co.uk/awards (Accessed 10 January 2020)
Aldi Stores Limited (2020) Delivery Information, available at: https://www.aldi.co.uk/customer-services/delivery (Accessed 01 January 2020)
Simpson, E. (2019) Aldi plans to open a new supermarket each week, available at: https://www.bbc.co.uk/news/business-49692086 (accessed 07 January 2020)
Photo credit: www.pixabay.com
Author: Joe David
Joe David has years of teaching experience both in the UK and abroad. He writes regularly online on a variety of topics. He has a keen interest in business, hospitality, and tourism management. He holds a Postgraduate Diploma in Management Studies and a Post Graduate Diploma in Marketing Management.