M RahmanMarketing mix of Aldi (4Ps of Aldi)
This is a detailed analysis of the marketing mix of Aldi (4Ps of Aldi). It aims to examine Aldi’s strategies concerning its products, prices, places, and promotions. Aldi is a German discount supermarket chain that has operations in many countries around the world. It is headquartered in Essen, Germany.
When it comes to grocery shopping, consumers have a lot of choices today. They can either shop at traditional grocery stores or go to discount chains like Aldi. In fact, there is an increasing number of customers who are switching over to Aldi. The question is: why? This article attempts to answer to the question by analysing the marketing mix of Aldi.
Products of Aldi
Aldi offers a wide range of products. Fresh food, fresh seasonal fruits and vegetables, frozen food, bakery, drinks, household, health & beauty, pet care, and whole foods are some of the key product categories in Aldi. It also sells a very good number of its own private label brands.
Aldi offers a wide range of organic products and sustainable options. However, Winchester (2022) reports that it was recently criticised after it appeared to brag about how unhealthy its vegan food range is.
Aldi claims to work with the very best suppliers to deliver the very best products for its customers (Aldi, 2023). However, some customers complain that its fresh fruit and vegetable selection can sometimes be very dull. Often fruits are overripe that can become inedible very quickly.
Price and pricing strategies of Aldi
Price is a key element in this marketing mix of Aldi (4Ps of Aldi). Aldi is famous as a discounter. It sells products that are both great value and high quality (Aldi, 2023). It has a very strong loyal customer base as well. A combination of both cheap price and quality of the products has helped it 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. In fact, Tesco in the UK is putting huge pressure on it by matching its prices on many products.
Aldi makes use of a number of pricing strategies. For example, it often uses psychological pricing. 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.
However, it is not always possible for Aldi to get its pricing right. For instance, many Aussie customers were not impressed with its freshly cut watermelon in a plastic container which was on sale for $6.99. They have branded it as ‘lazy’, ‘wasteful’ and ‘far too expensive’ (Finn, 2023).
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 many countries around the world. It has around 1000 stores in the UK, and more than 2150 stores across the USA (Smith, 2023). In also has many stores in Germany.
Customers can visit their nearest Aldi store or shop online. Aldi delivers products to most postal areas in the 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
Promotion is the final part of discussion in the marketing mix of Aldi (4Ps of Aldi). Aldi makes use of a number of promotional methods e.g. advertising, public relations, and sales promotions.
Aldi often advertises on TV and newspapers to reach out to the customers, particularly, in the US, UK, German, and Australian markets. It also uses electronic and traditional billboards in busy areas to draw people’s attention.
However, one of its ads was banned in the UK for misleading customers by artificially skewing price comparisons with Tesco. In fact, several of its ads were criticised and banned over the years.
Aldi also uses PR and has initiated several projects with regards to corporate social responsibility. For example, in the UK, it works with Teenage Cancer Trust to ‘ensure no young person faces cancer alone’ (Aldi, 2023).
Aldi also uses sales promotions regularly. For example, it often cut prices of many of its products. Likewise, its products on ‘Specialbuys’ category, available exclusively in stores, offer ‘unbelievable’ prices.
Aldi is active on Facebook, Twitter, Instagram, and other social media platforms. It also has an online store where customers can view and purchase products. However, it should increase the number of its YouTube subscribers.
Summary of the marketing mix of Aldi (4Ps of Aldi)
Aldi is a one-stop shop for many customers. It provides a wide range of products, and low prices. If customers are looking for a place to save money in their grocery shopping, then Aldi is the answer. In fact, many customers love it for the value for money and the wide product range. However, it is worth mentioning that not all of Aldi’s marketing mix techniques are equally effective.
We hope the article on the Marketing mix of Aldi (4Ps of Aldi) has been useful. Please share the article link on social media to support us. You may also like reading:
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Last update: 05 July 2022
References:
Aldi (2023) About Aldi, available at https://www.aldi.co.uk/about-aldi (Accessed 06 September 2023)
Finn, S. (2023) Aldi shoppers slam new $7 fruit buy as ‘lazy’ and ‘expensive’ after it launched in Aussie stores – sparking heated debate, available at: https://www.dailymail.co.uk/femail/real-life/article-11698905/ALDI-criticised-shoppers-plastic-waste-expense-freshly-cut-watermelon.html (accessed 06 September 2023)
Smith, P. (2023) Number of Aldi Süd stores worldwide, available at: https://www.statista.com/statistics/1102737/store-numbers-of-aldi-sued-worldwide-by-country/ (accessed 06 September 2023)
Winchester, L. (2022) Aldi criticised by shoppers for bragging about its ‘unhealthy’ vegan range, available at: https://www.mirror.co.uk/money/aldi-criticised-shoppers-bragging-unhealthy-25924037 (accessed 05 July 2022)
Author: M Rahman
M Rahman writes extensively online and offline 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.
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