H/507/0255 Marketing Essentials Unit 2 Level 5


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Marketing is a crucial tool in a business which promotes is business through understand the market trends that includes the customer demands which aid to build profit relationships, profit driven through the making marketing strategies and quality to the customers(Baker and Saren, 2016). A successful business have to realize the customer significance which makes a business prosperous, to lead in the market it is necessary for an organization to put some efforts to make a business strategies that pull the buyers to increase the selling power of a business, but marketing lies on some elements that are core of marketing, which assist a  business to achieve triumphant. In this report, ALDI is a chosen organization which deals in retail sector, it is a private firm founded in the year, 1993 by Karl Albrecht, Theo Albrecht. Now it is operated in almost 10, 366 locations and in countries such as Australia, Austria, Belgium, China, Denmark, France, Germany, Hungary, Ireland, Italy, Luxembourg, Spain, Switzerland, United Kingdom, United States, etc.

Task 1

P 1  Key roles and responsibilities of the marketing function

Marketing function has an important role in business organization which helps to identify  the products that have the potential to success in marketplace, through promotional activities. There are some fundamental functions in that are common in every business organization, it includes marketing research, product plan, development process, promotion, sales, finance, customer service, etc. These functions has several responsibilities that raise the organisation, that  consist of management strategies, marketing research, sales support system, product development, finance team, distribution systems, human resource department, among all these functions promotion is the heart of marketing. Along with the responsibilities marketing has some key roles that establishes a bond with other departments that results in increased business(Brady, 2014).

Marketing plays an prudent role in ALDI, it promoting products is its core function, it prepares the strategies that pull the customer at the door, of the supermarket. Marketing department draws an outline of powerful strategies that needed to implement with a concentration so that can  appeal to the buyers, encourage them to increase the purchasing. To promote it products it uses to advertisement, in newspapers, television, and other print media sources, although in current time internet is also a wide media of for advertisement. There are many techniques that builds a promotion coercive that brings increase sales. Along with the advertisements there are some other roles and strategies that enhances the buyer power to improve the profit of a business organization, for that it needed to determine the firms objectives and goals to achieve(Chamorro-Mera, Mirandaand and Rubio, 2014).

ALDI is one of the biggest supermarket retailer which has the most common strategy that  is discount, it influences the customers easily to purchase a wide variety of products. A business organization revolves around the goods and services which they provides to the public, with a  most interest that make them to purchase that intended product that have a quality.  There are several marketing function on which ALDI performs its activities and that bring the benefits to the company, they are as follows-

Distribution – Distribution refers to distribute the task to each department which involves in  the business, what kind of techniques or methods can be adopt to accomplish the goal and objective, which was predetermined. For an instance, ALDI has distinct sections which implies marketing with fair effects and in a good manner that can be provides the things in proper manner.

Finance – Finance is the most essential in every stage of an organization because every state  requires a amount to begin and end up the task, marketing department needs some budget to start its campaign that influences the customers. Marketing also has different activities for that it needed to gather some funds, that carry out strategies through a procedures to make an impression.

Marketing Information  - In marketing information, ALDI finds the facts where they needed to improve from customers perceptions, the gathered market data will  make them able to know the demands of customers, and there accessibility to see whether the campaigns are going on the right way. The previously determined demands will help them to gain profit, in precise manner, because they know what kind of stuff customer demand for(Fazlollahtabar, Aghasi and Forte, 2012).

Pricing – Establishing a price for the products that is offering by the firm, ALDI is providing the goods and services with better quality, but labelling price accordingly is a big task. It is necessary to attain the flexible price, so that customers can afford that, in competitive advantage. Because price has an important role in purchasing habits to influences the customers.

Promotion – Advertisement is a well – known element of promotions, ALDI utilizes the advertisements in a specific manner that can lead a products features. Although, there are various paid approaches to promote the goods and services, there are one of that is social media and online campaigns that making the things popular(Fırat, 2013).

Selling – Marketing is a base to increase the sales, because making aware the people about a product is important , until and unless the people does not know that they do not have any information the product. So, after the information of products, marketing leads to selling that means the products are display to outlets and customers make their decisions, to purchase.

P2 How roles and responsibilities of marketing relate to the wider organisational context

Marketing plays a vital role in organization, but along with that location and is also has importance, cause the selecting a particular geographical region where it is the marketing team putting up its efforts improves the profitability of business organization,marketing team provides the information that help to boost up the selling through the collection the information about the potential products which are desired by the population and that aid to attain goal of a business. Besides the roles of marketing, it has some responsibilities to communicate with other department within an organization, which is necessary because the interrelation in sections provides the information that impacts on one another. ALDI comprises marketing techniques which relates with the other sections of the firm, to extend the business and it also monitor the requirements and execution of the activities that are needed to accomplish a task through out the procedures. Monitoring and management is an example of a good management that is associated with marketing department, its unity with other sections aid to provide the continue supply in to market, and because of that it can fulfil all desires in the marketplace. Below are the necessity that tells why a marketing team needs to collaborate with other departments(Forshier, 2012).

Human resource - Marketing section of ALDI requires to communicate with human resources department, that needed to recruit the new employees, that works under sales force, so that there is no hurdle to assist customer when they are looking for some specific product or paying the bills at the time of checkout, and there is also some other sections which needs human staff like finance to maintain the accounts. There are some other requirements of the staff such as management of a supermarket, suppliers, and so on, who provides the services to the customers.

Product development – Marketing team communicates with product development to ensure the quantity, which is going to manufacture with the aim to providing in market place, that helps to maintain the supplying the goods in market, so there is no over stocking and under stocking problem occur, because marketing team renders exact information to the production team, so that they will produces according to the demands, to reduce wastage and that will also save the money(Gertner, 2011).

Administration and finance department -Marketing team have to stay in touch with administration and finance of a company, ALDI is a big brand, so it must be careful to spend its money. Marketing team makes a budget which is needed in different phases of marketing, for that it have to send the document to the authorities who sanctions the amount and approval from the governing body is mandatory, cause without their approval finance department will not allow to spend money.

Customer service – It is true that ALDI is a one stop destination, despite of that, customer may have some problems in some cases, for that there is a customer service department where people can complain or ask their queries, and marketing section will get the information from there and analyse the facts what people actually wants from ALDI. So that the things can be  improved in better manner, and there is no further implications in future and that can increase market visibility.

Quality of Product – ALDI offers a quality product as that promised, because product quality matters a lot, in order to satisfy the customers. Customer satisfaction is important for every business, that leads to compete in market scenario.

Assessment of risk- Marketing team is working with the risk assessment team that recognizes the existing risks in the market, so that they can find the solutions within time frame, to implement successful products and services. If there are some risk occurs in the present time then by using problem solving approach will be used to find out the solutions that can effectively minimized the risks(Jones and Rowley, 2011).

Suppliers – Marketing team analysed market requirements then they convey the message to the suppliers, to supply the goods as needed, so that overstocking can be trim and less wastage. ALDI has so many suppliers as it deals in different kinds of products, its marketing team identifies the needs of the people and then it interact with dealers, so that extra space will not be covered to block the area which can be utilise in putting in some other kind of stuff.

Task 2

P 3 Compare the ways in which ALDI applies the marketing mix

Marketing is operational functions that performs some activities that are practised to make the people aware about the goods and services, in the market where sellers relies on the potential buyers, to increase the sales. Sellers used to promote the products through a wide variety of advertisements that impacts on firms existence(Joshi, 2012).

Marketing strategies includes marketing mix that involves 4 Ps that shifted to 7 Ps, that consists a set of marketing tools, by blending all these tools a market response is generated, in order to attract the people to enhance the purchasing power of customers.  The marketing mix consists of product, promotions, place, price, people, process, physical evidence, that are making difference for different supermarket, here ALDI is comprising with IKEA, because both companies are using same marketing mix strategies, but they have diverse influence, that are described as -

Marketing Mix Tools




ALDI offers a huge range of food products which stands  at the same level of other quality brand(Kennedy and Parsons, 2014). The products which it sells these sourced by the selected suppliers and they are abide to maintained quality of the products that' why it charges less from other supermarkets. It also renders the specialized beverages like fresh fruit juices and vegetables, health and beauty products, clothes, stationary, Electronic products, Household goods and Soft tools. It keep experimenting with products except food, it changes its clothing collection according to season, and it is renowned for it best wine in Germany, ALDI Talk and ALDI Mobile.

IKEA offers a huge range of furniture for coffee tables, side tables, TV solutions, DVD storage, shelves, sideboards, bookcases, sofa beds, armchairs, leather sofas and fabric sofas, as well as many other products. There is a vast variety of products so that people can make their choices and it is primarily focused on at the tastes and needs of the customers. IKEA brings product to the local market after researching the local culture and people's lifestyle. It has a variety of styles and with affordable prices. But it maintains the quality of the products, the raw material it uses, is good, low pricing never compromises with qualitative products.


ALDI has a strong customer relations sue to its less price, that can affordable by anyone with quality assurance, which is not offered by the branded competitors(Khan and Adil, 2013). It uses the unit pricing strategies for groceries so that customers can easily compare with others. Market penetration uses to introduce a new product in  market so that it can easily enters to the market, competitive  price helps to compete against rivals and maintain the economies, psychology pricing considers a slight difference in rates so that it can make an image in customer mind.

When its comes to the pricing IKEA is also a brand which offers low price like ALDI, it uses discounts . However, the customers are satisfied with the price what they are paying against the quality, they are getting. The products are neither too expensive nor too cheaper regarding the raw material used in manufacturing. It also saves money on flat packaging for shipping(Lehmann and et. al., 2016).


ALDI group has more than 8000 stores across 18 countries and every week a new store is opened in Britain.  To maintain the cost it keep layouts very simple for the customers. ALDI acquires  the stuff in bulk from huge range of suppliers and stored them at warehouse, but with maintaining quality, it cares about to minimum disposal while transportation of goods and using environmental friendly equipment(Lovelock, 2011). 

IKEA presently serving in 28 countries with around 340 stores. Recently, it changes its strategies to acquire its stores in busy area, so that customer can easily reach there to purchase. It has smaller stores inside the town that contains limited reange of products, whereas, the big stores at city centre showcases a large products. It online website also offering a broad variety of product which is helping to grow higher from 2016, it enhances the accessibility of brand and for that it established a pick up points for the customers. It's e – commerce model is available in 14 countries, that improving the convenience of the products.


ALDI does not keep any marketing department in Germany, cause it claims to be cost saving strategy. Thus, it invests negligible amount for promotions, rather to spend money in promotional strategies it uses such schemes that influences customer's buying power, like 'Super Buys' which is available only the last stocks, and it is every week organizes by the firm an d it publishes the the news to inform people, through it 'ALDI informs' newsletter.

IKEA uses all kinds of form for promotions, as it is one of the best destinations for furniture, due to its popular brand name, and pricing structure(Malhotra, 2015). It uses best promotions strategies such as sales promotions and trade promotions. It offers discounts through coupons, price discounts, festival promotions, and other gimmicks, it juices all the marketing promotional strategies to give the advantages to their customers.


ALDI makes it product findings very easy through its sheer layout, that makes easy selection for customers, that reduces the number of employees, which was required to assist customers. ALDI offers limited high quality, and price so that customer do not think about to make decisions, it will save their time. It also have large barcodes and broader longer conveyor belts to identification and fast billing(Ogunmokun and Tang, 2012).

The furniture made by IKEA itself, it uses own wooden furniture and wooden components to adorn the house. The customer step to the store selects a products and order that, collected it and drive back to their place by themselves. This is a part of low pricing services.

Physical evidence

ALDI is world renowned brand in retail sector, and has the simple business processes, standardisation, and global pricing. Approximately, 85% of the stocks is provided for households from the brands. It is operated same price at  global level which offers nearly, 30% off on products(Ozuem and Prasad, 2015).

IKEA is a business which encompasses sustainability, and many of its goods are recyclable sue to woods, that refers to green energy solutions such as solar power. It has very large stores, and they all are situated out of town and offer a huge selection of furniture products. Its well – known clients are restaurant, its products are tend to adorn the large car parking, that offers a wide area to move.





Task 3

P4 Produce and evaluate a basic marketing plan

Marketing plan consist of all those documents which is associated with marketing strategies of an enterprise. This is very important to design a proper marketing plan for Aldi as this would help them in taking correct decisions regarding investment, promotion and many more. As Aldi is dealing with retail sector, they need to manufacture better quality of goods and services in order to establish strong position in market. For doing the same, they need to consider below written marketing scheme(Papasolomou and Melanthiou, 2012).

Mission of ALDI :

The aim or mission of refereed venture is to cater quality based merchandises to their expected consumers at affordable prices. The main reason of doing so is to meet all desires and request of users.

Vision of Aldi: The vision of the referred enterprise is to raise the purchasing power of customers by providing them low price products.

Objectives of ALDI:

  • To provide better quality of products and services to the customers for satisfying their desired needs or wants.
  • To become world's number one retail store by attracting number of customers and increase brand value in well manner.
  • To generate higher revenues or profits while running business at global level.


STP of Aldi

In order to raise the total sales of an enterprise it is important that required level of strategies are maintained so that sales volume can be maximised. Given below is the description of how Aldi can increase its revenue:

Segmentation – In market there are different variety of customers and if they are divided into subsets sharing common demands than their satisfaction level can be raised to a great extent. By categorising the customers into small groups it can accordingly maintain the desired level of standards for the customers(Rossi, Allenby and McCulloch, 2012).

Targeting – It is another technique of raising the total sales. in this a particular group of market is focused and accordingly the marketing strategies and product related decisions are taken. It is predetermined that what are the expectations of clients from a particular chain store and hence some are made present for them. this way an effective connection also gets developed among the brand and the work force. Aldi can focus on household products to attract the female clients as it is a big group and can be influenced by providing them a range of variety.

Positioning – it is one of the most important activity for any enterprise to develop. By delivering commodities of good standards and quality company can place the product more effectively. Aldi is successful in doing so as customers are happy with the quality delivered by the referred enterprise(Tripathi, 2013).

SWOT analysis of Aldi

SWOT analysis is a process through which different organisation gets to know about their strength and weaknesses. It is important to evaluate the factors present within Aldi which has their impact on business operations. This will help in creating an effective plan for the referred enterprise. SWOT analysis of the referred enterprise is given below:

Strength – The major strong point of the referred enterprise is that it has achieved the competitive advantage in its field. It is known for providing quality products in market at reduced price which has helped in better establishment of the brand in the eyes of customers. Range of commodities are made available under same roof which makes it easy for customers to buy and hence their satisfaction level remains high. the major strength of this firm is that it provides products at affordable prices which develops the purchasing power of customers. It is also doing well as Aldi has its stores in different parts of the world which shows that I have a strong presence like in Germany it is having 2500 stores which is a good amount. In 2015 it received award for being one of the best store in 2015 which further added its brand value and helped in raising the goodwill of the firm which develops the total sales of the firm. As the brand sales many of the items on its own name it has raised its worth in the eyes of customers and all the quarries of clients are solved at the same time which shows that the firm has a strong customer relationship(Baker and Saren, 2016).

Weaknesses – The major weakness which is faced by the referred enterprise is of positioning itself in market. As Aldi is providing its products on comparatively les price customers has made an image that this particular brand belongs for the lower class of people. when a product is made available at reduced price it is considered as of low quality which is not always a fact. It is necessary for this brand to develop a positive image as otherwise great loss of potential customers will be there.

Opportunities – By raising the present standards of products it can capture a greater market share as customers has made an image that Aldi deals in economic goods only. It can further grow by exploring new areas like Africa, Asia etc. where it is not existing in present.

Threats – due to continuous dynamic business environment Aldi is prone to different dangers. It is important that they are identified in advance so that accordingly corrective actions can be taken. Due to the excess of margins present in the retail sectors more and more units are becoming a part of this industry and hence can affect the total profitability of the firm(Brady, 2014).

Marketing mix

Under this organisation has to be more attentive as decision regarding each one of them has a great impact on the growth of business. Hence it is important that they are taken with maximum care.

Product – Range of variety is supplied by the referred enterprise which makes it effective in the retail sector. It provides grocery and other item that has maximum demand in market.

Place – There are almost 8000 stores of this firm which shows that it has a good number of store all around.

Promotion – Aldi do not use any promotional strategies rather it has own discount plans such as 'Super Buys' and swap and save.

Price – Aldi has discount strategies like unit pricing, market penetration, psychology pricing,etc., that causes to sustain its low price strategy(Chamorro-Mera, Miranda and Rubio, 2014).

Marketing Budget:

Aldi can consider an appropriate marketing budget which is requires for promoting the business in the particular market. These are as followings:

Marketing budget



1st year

2nd year

3rd year

4th year

5th year

Initial money


















Marketing expenditures












Sales promotion






Direct marketing












Available balance







Controlling: It is necessary that to review and check the entire performances in well manner. So that better plan can be executed and implemented for ALDI. Manager have to considers the several tools or techniques for solving any issues or problems in well manner. 


This report is based on marketing essentials, that elaborates about the marketing factors which are required to sustain in marketplace, every business uses to some marketing techniques, that used to establish market. Marketing has some roles and responsibilities that produces the sales to maximise the profit of the firm. ALDI is  a supermarket retailer which deals in all kinds of products like grocery, food products, attires, etc. The report is consists of its accessibility in  the market through making its relationship with other departments within itself, the technology is used by itself has a major role to capture the market. It minimize the displays and maximized the store front, so that people can easily find the place to purchase the products. It involves the marketing mix that includes 7Ps that applies to capture the market. The mission, vision and objectives, strength. weaknesses, opportunities and threats are described that needed to attain the victory of a firm in order to reach at perch, which is desired for any business organization. Aldi uses segmentation, targetting, and positioning to develop marketing strategies.

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