Marketing mix of Lidl

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Marketing mix of Lidl

This is a detailed analysis of the marketing mix of Lidl. It aims to examines the 4Ps i.e. product, price, place, promotion strategies of Lidl. Lidl is a German discount supermarket chain, headquartered in Neckarsulm, Germany.

Marketing mix of Lidl

Products of Lidl

Lidl offers fresh fruit & vegetable, meat, fish, bakery, frozen food, health and beauty products, cleaning and household products, pet food, baby food, baby health care and many more! It is committed to good quality and locally sourced products. For example, in the UK, 70% of Lidl products are supplied by British farmers and suppliers.

Lidl also sells some exclusive brands of products. For instance, Oaklands is Lidl’s exclusive brand of fresh fruit and vegetables (Lidl, 2020). Some of the Lidl products have won different industry awards as well. For instance, Six Lidl products won Quality Food Awards in 2016. Lidl is also the 2017 silver winner of Mother & Baby Awards for its TOUJOURS Maxi Nappies Size 4. Likewise, it won the title for Christmas Retailer of the Year 2018. However, Lidl product ranges are often limited compared to the big four supermarket chains in the UK.

An interesting aspect of Lidl’s product strategy is offering regular world food themes. This offers customers an opportunity to experience a wide variety of produce from all over the world including the South of France, Italy, Poland and Cornwall (Lidl, 2020). However, this approach does not distract the company from its focus on locally sourced produce.

Prices and pricing strategies of Lidl

Lidl is a discounter; therefore, the focus of the company is on penetration pricing. Penetration pricing refers to low pricing but selling more. Lidl is often cheaper than many other grocers. A survey on a basket of 20 items has found Lidl 9% cheaper than Wal-Mart in the USA (Hanbury, 2017).

So, how does Lidl maintain its low pricing? One of the biggest reasons is that the vast majority of the Lidl products are private-label brands. By producing private-label products, Lidl eliminates the middlemen that results in cost-saving. This often helps Lidl sell it products for higher profit margins than national brands. Other factors include but not confined to Lidl having a limited number of employees in each store and selling fast moving products.

Place/distribution channels of Lidl

Place often refers to distribution channels. Lidl has a good number of regional distribution centres to deliver quality produce across the UK. Customers can shop from over 760 Lidl stores in the UK, 3100 in Germany, and over 10,000 stores across Europe and the USA. Lidl is also expected to launch an online delivery system soon (Which? 2020). This will certainly help the company compete with the rivals more effectively. Likewise, this should also help customers avoid long queues at the checkouts.

Promotion strategies of Lidl

Promotion is the last component to discuss in the Marketing mix of Lidl. Lidl runs integrated promotional campaigns throughout the year. It often runs TV campaigns in many countries. It has also developed an app ‘Lidl app’ for iPhone and Android to help customers explore all the current and upcoming offers (Lidl, 2020).

Lidl uses public relations very well as well. The company website has a ‘Press Releases’ section to share key developments with general public. Lidl also uses sales promotions. For example, it has ‘Weekly Offers’ with which customers can save up to 25% on selected items.

We hope the article Marketing mix of Lidl. You may also like reading Marketing mix of Tesco and SWOT analysis of Lidl. Other relevant articles for you are:

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Last update: 11 January 2020

References:

Lidl (2020) About Us, available at: https://www.lidl.co.uk/en/About-Us.htm (accessed 05 January 2020)

Hanbury, M. (2017) A German grocery chain that’s coming to America is already dominating Walmart on prices — here’s why it’s so cheap, available at: http://uk.businessinsider.com/how-lidl-keeps-its-prices-down-2017-6/#1-most-of-its-products-are-private-label-brands-1 (accessed 20 December 2017)

Which? (2020) Is Lidl launching an online grocery delivery service?, available at: https://www.which.co.uk/news/2019/10/is-lidl-launching-an-online-grocery-delivery-service/ (accessed 10 January 2020)

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Author: M Rahman

M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.