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Introduction : A marketing plan: Aldi opening up a new in-store cafe
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Background of the report
Aldi supermarket is a global supermarket chain functioning over 9000 stores in around 19 countries all around the world. Over the past decade, the company’s marketing strategy has intended destructive growth globally and trying to make sure everyone has nearby company stores. Aldi Australia has revealed its first-ever corner Store completed with newly pressed juice and an in-house cafe serving made coffee, artisan bakery, and self-serving checkouts (Mortimer and Grimmer, 2021). The company is a discount supermarket series that has operated in many countries around the world. An Australian supermarket retail sector is oligopolistic in temperament and competitive in the market with only few sellers of product that can be differentiating but not to any immense amount (Schultz, et. al. 2021). Customers are welcome with an exciting entry with cheese stalls, fresh fruit, juices, and vegetables, and a huge range of suitable grab and go meals customized to the different areas with busy office workers and time-poor companies. The cafe stores have coffee with local artisan bakery segment, barista-made coffee, roasted, set of the retailer's famous special buying range, and even parking areas for pet owners so that they can easily tie their pets on a harness while they do their shopping (Spanjaard and Freeman, 2022). Aldi’s innovative in-store supermarket cafe should more focus on harmonizing its competitors, with its traditional significance of matching prices over everything else.
Target market, consumer profile and positioning statement
Market segmentation is a promotion strategy in which the firms select particular groups of consumers that are identified in different segments so that certain products can be accessible to them in a way that is suitable to their interests (Cortez, et. al. 2021). Market segment allow firms to provide advertising strategies for different type of customers, depends on how they observe the overall value of definite product and service. To shift its existing customers from grocery shopping to Cafe stores, the stores must match Aldi’s existing price strategies by proving excellent product at low prices. As such, the company supermarket Cafe should focus on the 18–35 year old age group as its main target customer segment market.
The target segment customer market of the 24 to 34-year age group has been segmenting is based on the above figures. The company is already promoting its products on social media channels such as TV advertising, Facebook, magazine, and newspaper, and attracting particular attention to its special offers for seasonal and month-end discounts. All the potential customers between the age of 19 and 33 should be target through digital platforms including advertisements throughout social media channels.
The company has already focused on a group of lower and higher income citizens or people who have limited optional spending. This fit into probable customer’s age between 19 and 35 years. The case company should adopt new approaches to advance its customer base in the marketplace. The age group of 26 to 35 years olds are the major coffee consumers in Australia and supermarket stores are ordinary customers as many buy coffee they would drink during the week at the store (Rismawati, et. al. 2019). To determine prospective ways of targeting a large audience, the STP framework will be integrated, and will also help in recognizing the ideal customer outline for Aldi supermarket cafe.
Aldi supermarket should focus its marketing plan on optimizing social media channels and communication platforms to attract a large number of customers for the opening of the cafe. The company can attract customers through innovation and creative ideas in business, as younger customers desire more interactive knowledge all through their purchasing experience. For example, the supermarket cafe can offers customers a unique experience through taste possibly including a taste of different cultures through its superb coffee bean (Sangvikar, et. al. 2019). The company can also offer Heavy discounts implemented on the products to be sold compared to existing competitors.
To boost its market shares, Aldi has increased their promotional activity by the use of dynamic marketing communication operations to make the consumers recognize the superiority of its products and services by offering outstanding services and informative messages to attract a large audience. The company’s promotion activity is aimed at the attainment of many customers using the methods like journal, television, and other press media.
The advertising communication tools have worked efficiently for the company’s outlet to the point where the consumers have developed an emotional attachment to the brand for the new launch of the cafe. The customers shopping inside the stores are confronted to try transaction at the point of purchase. The efficiency of in-store promotion messages has contributed to the sales of the supermarket which also attract the customers for the cafe where individuals make impulse-buying decisions (Rasool and Mahmood, 2018). Other in-store communications include packaging and displays to extend the brand campaigns; the firm makes use of newspaper promotions to reach a large audience in different areas.
Public relation is the major promotion tool that gives out a vital role in marketing strategies for every organization. Aldi supermarket cafe has used it to display the high superiority of its products through its social gathering endorsement. The supermarket has positioned more than 900 of its goods in many awards to attract customers' attention. Seasonal communication including swap and save expressed during much media coverage provide a huge advantage for the company to attract new customers.
The implication of social media in promotion tools has inward substantial attention over the past few decades. The industry has knocked the industrial ability of social Medias and included it in marketing. Aldi supermarket new launch cafe also made both Twitter and Facebook account for influencing more and more customers through the promotional pages and posts. Throughout these platforms, the company interact with its consumers, who are prepared and willing to give feedback and opinion concerning the value of their products. The effort of customers and the enthusiasm to share the best experiences at Aldi stores through social media channels have played an important role in persuasive other users to try the same product that they have.
An Integrated Marketing Communications (IMC) campaign and ideal positioning
The integrated marketing campaign of the Aldi cafe helps the organization to develop an effective communication interaction. The organization can identify the customers to operate the business with significant tools and approaches. The objectives of the cafe also provide selective and budget-oriented objectives for the IMC of Aldi. Though the existing stability has been functioning effectively for Aldi supermarket since the firm’s operated, there is an opportunity for development. To continue developing in the future, the firm should shift the stability somewhat towards developing strategy formulation rather than an inflexible path. The company operates in a high-paced marketplace environment, which is focused on the influence of many external forces, as well as technological, political, and social factors. These environment factors create the requirement for incessant adaptation to increase the market share. One of the best ways of foreseeing changes in the retail sector environment and adapting to them is by observing customer behaviours, tastes, demands, and preferences. Gathering information about consumer’s behaviours from frontier employees to plan a formulation would be beneficial for the integrated marketing communication campaign. For the case company, this could be a prospect to connect in developing strategic planning based on the insight gathered from its stores.
To promote the expansion of the recommended stability between the company’s strategies and plans, the firm will require constant, two-way communication between the supermarket manager and superior management. The results should be analyzed as part of strategic plan efforts, and a new plan could be tried out in specific café stores as part of developing strategy formulation. The company needs to invest in new product development by creating innovative products in the market that will attract a large number of customers. The reason behind that competitors have developed discount products for the target market to confine more market share from Aldi supermarket. Therefore, the firm needs to develop more new discount goods to gain an advantage from the new strategy of competitive firms and also keep its competition in the global market (Azizka and Kartika, 2021). In addition, it is a high potential to begin its private label to open a new segment market. Based on this thought, a company may improve its brand and enlarge its market shares in the market.
- The promotion mix strategies : The analysis of the 4 Ps of marketing mix Aldi aims to study the company’s strategies concerning its prices, products, places, and promotion. When it comes to retail shopping, customers have a lot of choices today. Now customers can also shop from traditional grocery stores or shop from discount chains like Aldi but the 4ps gives analyses for the new launch of cafe. There are an increasing amount of consumers who are switching over to Aldi because of its quality product and services which can play an essential role to attract more customers and profitable for the new cafe also. The 4Ps of the marketing mix of the company are:
- Products : The company offers a wide range of quality and fresh products to its customers. The company offers fresh foods, seasonal fruits and vegetables, frozen stuff, bakery items, soft drinks, household goods, health and beauty care products, pet care items, and many other products in the Aldi supermarket. The company also offers a wide range of natural products and maintains sustainability in its business operations from which people also take interest to spend some time in the cafe.
- Price : The company’s pricing strategy of keeping the lowest probable prices and basic discounts encourage customers with low and mid-level income group and inexpensive consumers around the global market to become regular customers.It has an extremely well-built loyal customer base and they offer a combination of both qualities of the products at cheap prices which helped the company in achieving customer loyalty towards the brand. However, its value mentions not all goods are cheaper in a firm as compared to those of its competitors.
- Place : Place refers to where the goods of the firm are available for customers to purchase. The case company has many stores in many areas around the world. The firm has over 970 stores in the UK and around 2000 stores across the US. The customer can visit the nearest supermarket in store café while purchasing some domestic items (Hanaysha, et. al. 2021).
- Promotion : The firm is making use of various promotional methods such as public relations, advertising, and sales promotions. The firm's promotion strategy in the UK, US, and, Australia, makes major use of electronic, print, and display mediums to endorse its new cafe launch at different locations.
The threat of new competitors in the supermarket cafe in the UK is not so high. It was clear that Asda, Sainsbury, and other supermarket firms set up significant barriers to the entrance of new businesses. For instance, the cafe will not be able to access inexpensive and trustworthy suppliers because competitive firms may have cornered the market for definite products. However, there is confirmation of the power and size of supermarket cafes are not capable to react on the value, price, and quality of the products. For example, the firm can successfully gain more market share in the UK, because it has applied a functional strategy of low-price products with high quality. If the coffee beans are too expensive in the Aldi supermarket cafe, customers will move to another supermarket to buy the same products, thus a price war will occur directly among the firms (Giones, et. al. 2019). For example, normal suppliers sign an agreement with the retailer about payment of a certain price for their goods, but if the retailer does not pay the cost, suppliers will stop the product's delivery. The major reason for rivalry is strong in the supermarket industry is because of price conflict happening among supermarket firms. The company can give the highest discount to increase its market share and increase revenue (Yuan and Shen, 2019). The company has competition from companies like Tesco that can offer substitutes for their goods but the idea of launching a new cafe will enhance the competitive advantages within the country.
The report has stated the marketing plan that enables Aldi supermarket to realize opportunities in the current business environment. The report has also concluded the marketing plan consist of targeting, segmentation, differentiation, and positioning strategy and strategic recommendations to assist Aldi supermarket opening up a new in-store cafe to achieve its objectives. The report has highlighted the three major objectives of the marketing plan that include a suitable target market, market segment, and integrated marketing communications strategy using promotional mix tools that will enable an increase in market share and value of Aldi.
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