NCERT Textbook - Enterprise Marketing | Entrepreneurship Class 12 - Commerce PDF Download

 Page 1


 91 
UNIT –3: ENTERPRISE MARKETING 
“Formal education will make you a living; self-education will make you a fortune.” 
– Jim Rohn  
Learning Objectives 
The learner will be able to: 
? Understand what are goal–setting and SMART goals 
? Enlist the various marketing strategies used in a 
firm 
? Understand in detail the 4P’s of marketing 
? Enlist the various selling strategies used in a firm 
? Understand the various concepts like brand, logo 
and tagline 
? Understand the meaning and methods of 
negotiation 
? Understand the importance of customer  
? Understand the importance of employee and 
vendor management in a firm 
? Understand the importance of quality in customer 
satisfaction 
? Enumerate the various reasons for business failure 
 
Case Study-I 
Creating Value through Marketing Mix 
In increasingly competitive markets, consumers have a greater choice 
of where they buy their goods and services. For an organisation to 
meet its business objectives, it has to find out what the consumers 
require and then identify the best way in which it can satisfy these 
needs and wants. Creating a competitive advantage can be difficult. 
A unique marketing strategy with clear objectives is vital to ensure 
effective promotional activity. Since opening its first store in 1913, 
Aldi has established itself as one of the most reputable retailers in the 
global business market by providing great value and quality. Aldi‘s goal is simple; =To provide 
our customers with the products they buy regularly and ensure that those products are of the 
highest possible quality at guaranteed low prices.‘ 
Aldi‘s products are sourced from hand-picked suppliers whose products are sold under Aldi‘s 
own brand labels. Aldi‘s main marketing objective is to grow its market share within the UK 
Content 
? Goals of Business; Goal 
Setting; SMART Goals 
? Marketing and Sales strategy 
? Branding - Business Name, 
logo, tagline 
? Promotion strategy 
? Negotiation - Importance and 
methods 
? Customer Relations 
? Employee and vendor 
management 
? Quality, timeliness and 
customer satisfaction 
? Business failure - reasons 
Page 2


 91 
UNIT –3: ENTERPRISE MARKETING 
“Formal education will make you a living; self-education will make you a fortune.” 
– Jim Rohn  
Learning Objectives 
The learner will be able to: 
? Understand what are goal–setting and SMART goals 
? Enlist the various marketing strategies used in a 
firm 
? Understand in detail the 4P’s of marketing 
? Enlist the various selling strategies used in a firm 
? Understand the various concepts like brand, logo 
and tagline 
? Understand the meaning and methods of 
negotiation 
? Understand the importance of customer  
? Understand the importance of employee and 
vendor management in a firm 
? Understand the importance of quality in customer 
satisfaction 
? Enumerate the various reasons for business failure 
 
Case Study-I 
Creating Value through Marketing Mix 
In increasingly competitive markets, consumers have a greater choice 
of where they buy their goods and services. For an organisation to 
meet its business objectives, it has to find out what the consumers 
require and then identify the best way in which it can satisfy these 
needs and wants. Creating a competitive advantage can be difficult. 
A unique marketing strategy with clear objectives is vital to ensure 
effective promotional activity. Since opening its first store in 1913, 
Aldi has established itself as one of the most reputable retailers in the 
global business market by providing great value and quality. Aldi‘s goal is simple; =To provide 
our customers with the products they buy regularly and ensure that those products are of the 
highest possible quality at guaranteed low prices.‘ 
Aldi‘s products are sourced from hand-picked suppliers whose products are sold under Aldi‘s 
own brand labels. Aldi‘s main marketing objective is to grow its market share within the UK 
Content 
? Goals of Business; Goal 
Setting; SMART Goals 
? Marketing and Sales strategy 
? Branding - Business Name, 
logo, tagline 
? Promotion strategy 
? Negotiation - Importance and 
methods 
? Customer Relations 
? Employee and vendor 
management 
? Quality, timeliness and 
customer satisfaction 
? Business failure - reasons 
 92 
grocery market. With the economic 
crisis came an increased demand for 
value for money. Market research 
identified that 80% of Aldi‘s 
customer base also shopped at other 
Supermarkets. These customers spent 
around £20 billion per year in the 
other stores. Aldi‘s marketing 
strategies therefore focus on generating customer loyalty. Aldi focuses its marketing efforts on 
encouraging customers that are already familiar with the brand to Shop at Aldi more often. 
Another key focus of Aldi‘s marketing strategy is on demonstrating that Aldi brands are of 
equal quality to well known brands such as Heinz and Fairy Liquid. To do this Aldi ran blind 
taste tests amongst a cross section of shoppers. These confirmed that the majority of consumers 
that liked the famous brands also liked Aldi‘s brands. These findings formed the basis to Aldi‘s 
=LikeBrands‘ marketing campaign. This provided Aldi with a platform to communicate its 
quality and value messages effectively. Aldi‘s immediate challenge for the =Like Brands‘ 
campaign was to increase market share from 2.3% to 2.5%. Although this sounds very little, 
the retail grocery market is very large. A single 0.1% is worth an extra £65 million revenue.  
This case study focuses on the marketing strategies used by Aldi to increase its market share 
and encourage loyal customers.  
The marketing mix 
The chartered institute of marketing describes the term 
marketing as =The process responsible for identifying, 
anticipating and satisfying consumer requirements profitably.‘ 
This places consumers at the heart of every organization. The 
marketing mix is often referred to as the four Ps. It involves 
creating a unique blend of the right product, sold at the right 
price, in the right place, using the most suitable methods of 
promotion. A marketing mix is a complex set of variables. The 
marketing mix of every business will be different. Aldi‘s mix 
focuses on providing high quality products that are cheaper alternatives to famous brands.  
Aldi‘s marketing mix therefore focuses on: 
? Product – high quality =Like Brands‘. 
? Price – Aldi offers lower prices than its competitors, without compromising on quality. 
? Place – Aldi outlets are expanding globally. 
? Promotions – Aldi uses a combination of above-the-line and below-the-line promotions with 
a focus on its =Like Brands‘ and =Swap & Save‘ campaigns. 
Balancing the mix 
Organisations need a balanced marketing mix to meet the needs of their customers. Aldi‘s focus 
is on offering the best possible quality products at the lowest possible prices. Every buyer for 
Page 3


 91 
UNIT –3: ENTERPRISE MARKETING 
“Formal education will make you a living; self-education will make you a fortune.” 
– Jim Rohn  
Learning Objectives 
The learner will be able to: 
? Understand what are goal–setting and SMART goals 
? Enlist the various marketing strategies used in a 
firm 
? Understand in detail the 4P’s of marketing 
? Enlist the various selling strategies used in a firm 
? Understand the various concepts like brand, logo 
and tagline 
? Understand the meaning and methods of 
negotiation 
? Understand the importance of customer  
? Understand the importance of employee and 
vendor management in a firm 
? Understand the importance of quality in customer 
satisfaction 
? Enumerate the various reasons for business failure 
 
Case Study-I 
Creating Value through Marketing Mix 
In increasingly competitive markets, consumers have a greater choice 
of where they buy their goods and services. For an organisation to 
meet its business objectives, it has to find out what the consumers 
require and then identify the best way in which it can satisfy these 
needs and wants. Creating a competitive advantage can be difficult. 
A unique marketing strategy with clear objectives is vital to ensure 
effective promotional activity. Since opening its first store in 1913, 
Aldi has established itself as one of the most reputable retailers in the 
global business market by providing great value and quality. Aldi‘s goal is simple; =To provide 
our customers with the products they buy regularly and ensure that those products are of the 
highest possible quality at guaranteed low prices.‘ 
Aldi‘s products are sourced from hand-picked suppliers whose products are sold under Aldi‘s 
own brand labels. Aldi‘s main marketing objective is to grow its market share within the UK 
Content 
? Goals of Business; Goal 
Setting; SMART Goals 
? Marketing and Sales strategy 
? Branding - Business Name, 
logo, tagline 
? Promotion strategy 
? Negotiation - Importance and 
methods 
? Customer Relations 
? Employee and vendor 
management 
? Quality, timeliness and 
customer satisfaction 
? Business failure - reasons 
 92 
grocery market. With the economic 
crisis came an increased demand for 
value for money. Market research 
identified that 80% of Aldi‘s 
customer base also shopped at other 
Supermarkets. These customers spent 
around £20 billion per year in the 
other stores. Aldi‘s marketing 
strategies therefore focus on generating customer loyalty. Aldi focuses its marketing efforts on 
encouraging customers that are already familiar with the brand to Shop at Aldi more often. 
Another key focus of Aldi‘s marketing strategy is on demonstrating that Aldi brands are of 
equal quality to well known brands such as Heinz and Fairy Liquid. To do this Aldi ran blind 
taste tests amongst a cross section of shoppers. These confirmed that the majority of consumers 
that liked the famous brands also liked Aldi‘s brands. These findings formed the basis to Aldi‘s 
=LikeBrands‘ marketing campaign. This provided Aldi with a platform to communicate its 
quality and value messages effectively. Aldi‘s immediate challenge for the =Like Brands‘ 
campaign was to increase market share from 2.3% to 2.5%. Although this sounds very little, 
the retail grocery market is very large. A single 0.1% is worth an extra £65 million revenue.  
This case study focuses on the marketing strategies used by Aldi to increase its market share 
and encourage loyal customers.  
The marketing mix 
The chartered institute of marketing describes the term 
marketing as =The process responsible for identifying, 
anticipating and satisfying consumer requirements profitably.‘ 
This places consumers at the heart of every organization. The 
marketing mix is often referred to as the four Ps. It involves 
creating a unique blend of the right product, sold at the right 
price, in the right place, using the most suitable methods of 
promotion. A marketing mix is a complex set of variables. The 
marketing mix of every business will be different. Aldi‘s mix 
focuses on providing high quality products that are cheaper alternatives to famous brands.  
Aldi‘s marketing mix therefore focuses on: 
? Product – high quality =Like Brands‘. 
? Price – Aldi offers lower prices than its competitors, without compromising on quality. 
? Place – Aldi outlets are expanding globally. 
? Promotions – Aldi uses a combination of above-the-line and below-the-line promotions with 
a focus on its =Like Brands‘ and =Swap & Save‘ campaigns. 
Balancing the mix 
Organisations need a balanced marketing mix to meet the needs of their customers. Aldi‘s focus 
is on offering the best possible quality products at the lowest possible prices. Every buyer for 
 93 
Aldi, from fresh fruits and vegetables to meats and electronics, is an expert in his field. They 
look for products from around the world. This enables them to get the finest quality products 
that Aldi then sells under its own brand labels. Selecting the prices is one of the most difficult 
considerations when developing a marketing mix.  
Different pricing strategies that are commonly used include: 
? Market penetration – charging lower prices for new products to help them enter the market 
and gain market share quickly. 
? Competitive pricing – pricing at a slightly lower prices than competitors. 
? Strategic pricing – emphasising the quality or brand positioning of a product to allow a 
higher price to be charged. 
Competitive pricing is a key strategy for Aldi. Aldi is able to offer quality products at low prices 
as it buys in great volume. The fact that Aldi buys such large quantities of these products 
allows great leverage for negotiating the best possible prices with its suppliers. 
This is called economies of scale. Buying large quantities of each product allows Aldi to pass 
these savings to its customers.  
The place element of the marketing mix involves identifying where the product or service will be 
sold. Aldi keeps its store layouts simple to limit waste and keeps the costs down. This means 
Aldi can focus on offering its customers the lowest possible prices for its products. When 
considering new store locations, Aldi takes into account: 
? the number of people visiting an area as well as the demography of the area – for example, 
the population of the area should be more than 30,000 people 
? the position of store – Aldi focuses on edge of the town centre locations with good visibility 
from a main road and not too much competition 
? the accessibility of the store and its public transport links 
? the number of parking spaces available. 
Above-the-line promotion 
For Aldi to achieve its objective of increasing its market share, it had to ensure its promotional 
activity demonstrated the balance of its marketing mix. For example, to increase customer 
loyalty it had to communicate its key quality and value messages. Promotion helps to: 
? increase awareness and improve brand recognition 
? increase demand for products 
? improve brand image 
? highlight the superiority of products and services. 
Above-the-line promotions are paid-for advertising aimed at a mass audience. These include the 
media such as television, radio, magazines and newspapers that reach a large number of people. 
This form of promotion can be costly. It can also be difficult to target specific audiences. Aldi 
uses a range of above-the-line methods to reach its customers and potential customers.  
These include: 
Advertising on TV. The =Like Brands‘ campaign features 20 second TV adverts which focus on 
a particular product. The adverts show a famous brand as a benchmark for quality side-by-side 
Page 4


 91 
UNIT –3: ENTERPRISE MARKETING 
“Formal education will make you a living; self-education will make you a fortune.” 
– Jim Rohn  
Learning Objectives 
The learner will be able to: 
? Understand what are goal–setting and SMART goals 
? Enlist the various marketing strategies used in a 
firm 
? Understand in detail the 4P’s of marketing 
? Enlist the various selling strategies used in a firm 
? Understand the various concepts like brand, logo 
and tagline 
? Understand the meaning and methods of 
negotiation 
? Understand the importance of customer  
? Understand the importance of employee and 
vendor management in a firm 
? Understand the importance of quality in customer 
satisfaction 
? Enumerate the various reasons for business failure 
 
Case Study-I 
Creating Value through Marketing Mix 
In increasingly competitive markets, consumers have a greater choice 
of where they buy their goods and services. For an organisation to 
meet its business objectives, it has to find out what the consumers 
require and then identify the best way in which it can satisfy these 
needs and wants. Creating a competitive advantage can be difficult. 
A unique marketing strategy with clear objectives is vital to ensure 
effective promotional activity. Since opening its first store in 1913, 
Aldi has established itself as one of the most reputable retailers in the 
global business market by providing great value and quality. Aldi‘s goal is simple; =To provide 
our customers with the products they buy regularly and ensure that those products are of the 
highest possible quality at guaranteed low prices.‘ 
Aldi‘s products are sourced from hand-picked suppliers whose products are sold under Aldi‘s 
own brand labels. Aldi‘s main marketing objective is to grow its market share within the UK 
Content 
? Goals of Business; Goal 
Setting; SMART Goals 
? Marketing and Sales strategy 
? Branding - Business Name, 
logo, tagline 
? Promotion strategy 
? Negotiation - Importance and 
methods 
? Customer Relations 
? Employee and vendor 
management 
? Quality, timeliness and 
customer satisfaction 
? Business failure - reasons 
 92 
grocery market. With the economic 
crisis came an increased demand for 
value for money. Market research 
identified that 80% of Aldi‘s 
customer base also shopped at other 
Supermarkets. These customers spent 
around £20 billion per year in the 
other stores. Aldi‘s marketing 
strategies therefore focus on generating customer loyalty. Aldi focuses its marketing efforts on 
encouraging customers that are already familiar with the brand to Shop at Aldi more often. 
Another key focus of Aldi‘s marketing strategy is on demonstrating that Aldi brands are of 
equal quality to well known brands such as Heinz and Fairy Liquid. To do this Aldi ran blind 
taste tests amongst a cross section of shoppers. These confirmed that the majority of consumers 
that liked the famous brands also liked Aldi‘s brands. These findings formed the basis to Aldi‘s 
=LikeBrands‘ marketing campaign. This provided Aldi with a platform to communicate its 
quality and value messages effectively. Aldi‘s immediate challenge for the =Like Brands‘ 
campaign was to increase market share from 2.3% to 2.5%. Although this sounds very little, 
the retail grocery market is very large. A single 0.1% is worth an extra £65 million revenue.  
This case study focuses on the marketing strategies used by Aldi to increase its market share 
and encourage loyal customers.  
The marketing mix 
The chartered institute of marketing describes the term 
marketing as =The process responsible for identifying, 
anticipating and satisfying consumer requirements profitably.‘ 
This places consumers at the heart of every organization. The 
marketing mix is often referred to as the four Ps. It involves 
creating a unique blend of the right product, sold at the right 
price, in the right place, using the most suitable methods of 
promotion. A marketing mix is a complex set of variables. The 
marketing mix of every business will be different. Aldi‘s mix 
focuses on providing high quality products that are cheaper alternatives to famous brands.  
Aldi‘s marketing mix therefore focuses on: 
? Product – high quality =Like Brands‘. 
? Price – Aldi offers lower prices than its competitors, without compromising on quality. 
? Place – Aldi outlets are expanding globally. 
? Promotions – Aldi uses a combination of above-the-line and below-the-line promotions with 
a focus on its =Like Brands‘ and =Swap & Save‘ campaigns. 
Balancing the mix 
Organisations need a balanced marketing mix to meet the needs of their customers. Aldi‘s focus 
is on offering the best possible quality products at the lowest possible prices. Every buyer for 
 93 
Aldi, from fresh fruits and vegetables to meats and electronics, is an expert in his field. They 
look for products from around the world. This enables them to get the finest quality products 
that Aldi then sells under its own brand labels. Selecting the prices is one of the most difficult 
considerations when developing a marketing mix.  
Different pricing strategies that are commonly used include: 
? Market penetration – charging lower prices for new products to help them enter the market 
and gain market share quickly. 
? Competitive pricing – pricing at a slightly lower prices than competitors. 
? Strategic pricing – emphasising the quality or brand positioning of a product to allow a 
higher price to be charged. 
Competitive pricing is a key strategy for Aldi. Aldi is able to offer quality products at low prices 
as it buys in great volume. The fact that Aldi buys such large quantities of these products 
allows great leverage for negotiating the best possible prices with its suppliers. 
This is called economies of scale. Buying large quantities of each product allows Aldi to pass 
these savings to its customers.  
The place element of the marketing mix involves identifying where the product or service will be 
sold. Aldi keeps its store layouts simple to limit waste and keeps the costs down. This means 
Aldi can focus on offering its customers the lowest possible prices for its products. When 
considering new store locations, Aldi takes into account: 
? the number of people visiting an area as well as the demography of the area – for example, 
the population of the area should be more than 30,000 people 
? the position of store – Aldi focuses on edge of the town centre locations with good visibility 
from a main road and not too much competition 
? the accessibility of the store and its public transport links 
? the number of parking spaces available. 
Above-the-line promotion 
For Aldi to achieve its objective of increasing its market share, it had to ensure its promotional 
activity demonstrated the balance of its marketing mix. For example, to increase customer 
loyalty it had to communicate its key quality and value messages. Promotion helps to: 
? increase awareness and improve brand recognition 
? increase demand for products 
? improve brand image 
? highlight the superiority of products and services. 
Above-the-line promotions are paid-for advertising aimed at a mass audience. These include the 
media such as television, radio, magazines and newspapers that reach a large number of people. 
This form of promotion can be costly. It can also be difficult to target specific audiences. Aldi 
uses a range of above-the-line methods to reach its customers and potential customers.  
These include: 
Advertising on TV. The =Like Brands‘ campaign features 20 second TV adverts which focus on 
a particular product. The adverts show a famous brand as a benchmark for quality side-by-side 
 94 
with an Aldi brand product. They use the slogan 'Like Brands, Only Cheaper‘. This reinforces 
the message that Aldi products are cheaper than leading brands but equal in terms of quality. 
The adverts provide personality to the Aldi brand use humour which helps to build trust and an 
emotional connection with target audiences.  
Printed leaflets are distributed within stores (1 million copies printed per week) and also to 
customers living in areas surrounding the stores. These leaflets help to reinforce the =Like 
Brands‘ campaign. They also showcase products with limited availability and seasonal offers 
available in stores.  
Newspaper adverts extend the 'Like Brands' campaign and help to showcase a variety of 
product categories. They also communicate Aldi‘s =Swap and Save‘ message. This campaign 
demonstrates the amount that shoppers could save if they swapped their weekly shop to Aldi. 
They compare Aldi products to famous brands to demonstrate Aldi‘s value for money message.  
In–store posters are also used to highlight the =Swap and Save‘ message. Below-the-line 
promotion uses different ways to engage with customers. These methods can be more easily 
targeted to specific audiences than above-the-line methods. They offer organisations a greater 
level of control over their communications. 
Aldi uses a range of below-the-line methods. These include: 
? social media 
? targeted e-mails to customers 
? 3rd party endorsement and awards 
? public relations and media relations 
Aldi‘s Facebook and Twitter pages encourage two-way communication with customers. These 
social media channels provide a platform through which Aldi can interact with customers. It 
can then assess their opinions about the brand. One objective of this form of promotion is to 
create =Aldi Advocates‘. These are consumers who recommend Aldi to others, through 
stimulating interactions about the high quality and low prices of Aldi products. For example, 
the =I Love Aldi‘ campaign asked fans to send a virtual Aldi Valentines card to a Facebook 
friend. This was encouraged by providing rewards. The campaign gave consumers the chance to 
win a £10 voucher. They could also win a box of Aldi chocolates for their Valentine. The 
campaign also encouraged consumers to complete the sentence =I love Aldi because...‘ directly 
onto Aldi‘s Facebook page to encourage positive brand feedback.  
Aldi also uses direct e-mails. These e-mails allow Aldi to communicate a variety of messages to 
target customers. For example, they can convey the =Swap and Save‘ message as well as to 
promote seasonal messages such as products associated with Pancake Day.  Aldi‘s website is an 
integral part of its below-the-line promotion. It features all of Aldi‘s key promotional messages 
as well as additional content to engage consumers. Examples include recipe ideas and weekly 
offers. Aldi developed the www.likealdi.co.uk micro-website to further encourage brand 
engagement with the 'Like Brands‘ TV campaign. The site provides consumers with the 
opportunity to upload their ideas for the next Aldi TV campaign. 
Page 5


 91 
UNIT –3: ENTERPRISE MARKETING 
“Formal education will make you a living; self-education will make you a fortune.” 
– Jim Rohn  
Learning Objectives 
The learner will be able to: 
? Understand what are goal–setting and SMART goals 
? Enlist the various marketing strategies used in a 
firm 
? Understand in detail the 4P’s of marketing 
? Enlist the various selling strategies used in a firm 
? Understand the various concepts like brand, logo 
and tagline 
? Understand the meaning and methods of 
negotiation 
? Understand the importance of customer  
? Understand the importance of employee and 
vendor management in a firm 
? Understand the importance of quality in customer 
satisfaction 
? Enumerate the various reasons for business failure 
 
Case Study-I 
Creating Value through Marketing Mix 
In increasingly competitive markets, consumers have a greater choice 
of where they buy their goods and services. For an organisation to 
meet its business objectives, it has to find out what the consumers 
require and then identify the best way in which it can satisfy these 
needs and wants. Creating a competitive advantage can be difficult. 
A unique marketing strategy with clear objectives is vital to ensure 
effective promotional activity. Since opening its first store in 1913, 
Aldi has established itself as one of the most reputable retailers in the 
global business market by providing great value and quality. Aldi‘s goal is simple; =To provide 
our customers with the products they buy regularly and ensure that those products are of the 
highest possible quality at guaranteed low prices.‘ 
Aldi‘s products are sourced from hand-picked suppliers whose products are sold under Aldi‘s 
own brand labels. Aldi‘s main marketing objective is to grow its market share within the UK 
Content 
? Goals of Business; Goal 
Setting; SMART Goals 
? Marketing and Sales strategy 
? Branding - Business Name, 
logo, tagline 
? Promotion strategy 
? Negotiation - Importance and 
methods 
? Customer Relations 
? Employee and vendor 
management 
? Quality, timeliness and 
customer satisfaction 
? Business failure - reasons 
 92 
grocery market. With the economic 
crisis came an increased demand for 
value for money. Market research 
identified that 80% of Aldi‘s 
customer base also shopped at other 
Supermarkets. These customers spent 
around £20 billion per year in the 
other stores. Aldi‘s marketing 
strategies therefore focus on generating customer loyalty. Aldi focuses its marketing efforts on 
encouraging customers that are already familiar with the brand to Shop at Aldi more often. 
Another key focus of Aldi‘s marketing strategy is on demonstrating that Aldi brands are of 
equal quality to well known brands such as Heinz and Fairy Liquid. To do this Aldi ran blind 
taste tests amongst a cross section of shoppers. These confirmed that the majority of consumers 
that liked the famous brands also liked Aldi‘s brands. These findings formed the basis to Aldi‘s 
=LikeBrands‘ marketing campaign. This provided Aldi with a platform to communicate its 
quality and value messages effectively. Aldi‘s immediate challenge for the =Like Brands‘ 
campaign was to increase market share from 2.3% to 2.5%. Although this sounds very little, 
the retail grocery market is very large. A single 0.1% is worth an extra £65 million revenue.  
This case study focuses on the marketing strategies used by Aldi to increase its market share 
and encourage loyal customers.  
The marketing mix 
The chartered institute of marketing describes the term 
marketing as =The process responsible for identifying, 
anticipating and satisfying consumer requirements profitably.‘ 
This places consumers at the heart of every organization. The 
marketing mix is often referred to as the four Ps. It involves 
creating a unique blend of the right product, sold at the right 
price, in the right place, using the most suitable methods of 
promotion. A marketing mix is a complex set of variables. The 
marketing mix of every business will be different. Aldi‘s mix 
focuses on providing high quality products that are cheaper alternatives to famous brands.  
Aldi‘s marketing mix therefore focuses on: 
? Product – high quality =Like Brands‘. 
? Price – Aldi offers lower prices than its competitors, without compromising on quality. 
? Place – Aldi outlets are expanding globally. 
? Promotions – Aldi uses a combination of above-the-line and below-the-line promotions with 
a focus on its =Like Brands‘ and =Swap & Save‘ campaigns. 
Balancing the mix 
Organisations need a balanced marketing mix to meet the needs of their customers. Aldi‘s focus 
is on offering the best possible quality products at the lowest possible prices. Every buyer for 
 93 
Aldi, from fresh fruits and vegetables to meats and electronics, is an expert in his field. They 
look for products from around the world. This enables them to get the finest quality products 
that Aldi then sells under its own brand labels. Selecting the prices is one of the most difficult 
considerations when developing a marketing mix.  
Different pricing strategies that are commonly used include: 
? Market penetration – charging lower prices for new products to help them enter the market 
and gain market share quickly. 
? Competitive pricing – pricing at a slightly lower prices than competitors. 
? Strategic pricing – emphasising the quality or brand positioning of a product to allow a 
higher price to be charged. 
Competitive pricing is a key strategy for Aldi. Aldi is able to offer quality products at low prices 
as it buys in great volume. The fact that Aldi buys such large quantities of these products 
allows great leverage for negotiating the best possible prices with its suppliers. 
This is called economies of scale. Buying large quantities of each product allows Aldi to pass 
these savings to its customers.  
The place element of the marketing mix involves identifying where the product or service will be 
sold. Aldi keeps its store layouts simple to limit waste and keeps the costs down. This means 
Aldi can focus on offering its customers the lowest possible prices for its products. When 
considering new store locations, Aldi takes into account: 
? the number of people visiting an area as well as the demography of the area – for example, 
the population of the area should be more than 30,000 people 
? the position of store – Aldi focuses on edge of the town centre locations with good visibility 
from a main road and not too much competition 
? the accessibility of the store and its public transport links 
? the number of parking spaces available. 
Above-the-line promotion 
For Aldi to achieve its objective of increasing its market share, it had to ensure its promotional 
activity demonstrated the balance of its marketing mix. For example, to increase customer 
loyalty it had to communicate its key quality and value messages. Promotion helps to: 
? increase awareness and improve brand recognition 
? increase demand for products 
? improve brand image 
? highlight the superiority of products and services. 
Above-the-line promotions are paid-for advertising aimed at a mass audience. These include the 
media such as television, radio, magazines and newspapers that reach a large number of people. 
This form of promotion can be costly. It can also be difficult to target specific audiences. Aldi 
uses a range of above-the-line methods to reach its customers and potential customers.  
These include: 
Advertising on TV. The =Like Brands‘ campaign features 20 second TV adverts which focus on 
a particular product. The adverts show a famous brand as a benchmark for quality side-by-side 
 94 
with an Aldi brand product. They use the slogan 'Like Brands, Only Cheaper‘. This reinforces 
the message that Aldi products are cheaper than leading brands but equal in terms of quality. 
The adverts provide personality to the Aldi brand use humour which helps to build trust and an 
emotional connection with target audiences.  
Printed leaflets are distributed within stores (1 million copies printed per week) and also to 
customers living in areas surrounding the stores. These leaflets help to reinforce the =Like 
Brands‘ campaign. They also showcase products with limited availability and seasonal offers 
available in stores.  
Newspaper adverts extend the 'Like Brands' campaign and help to showcase a variety of 
product categories. They also communicate Aldi‘s =Swap and Save‘ message. This campaign 
demonstrates the amount that shoppers could save if they swapped their weekly shop to Aldi. 
They compare Aldi products to famous brands to demonstrate Aldi‘s value for money message.  
In–store posters are also used to highlight the =Swap and Save‘ message. Below-the-line 
promotion uses different ways to engage with customers. These methods can be more easily 
targeted to specific audiences than above-the-line methods. They offer organisations a greater 
level of control over their communications. 
Aldi uses a range of below-the-line methods. These include: 
? social media 
? targeted e-mails to customers 
? 3rd party endorsement and awards 
? public relations and media relations 
Aldi‘s Facebook and Twitter pages encourage two-way communication with customers. These 
social media channels provide a platform through which Aldi can interact with customers. It 
can then assess their opinions about the brand. One objective of this form of promotion is to 
create =Aldi Advocates‘. These are consumers who recommend Aldi to others, through 
stimulating interactions about the high quality and low prices of Aldi products. For example, 
the =I Love Aldi‘ campaign asked fans to send a virtual Aldi Valentines card to a Facebook 
friend. This was encouraged by providing rewards. The campaign gave consumers the chance to 
win a £10 voucher. They could also win a box of Aldi chocolates for their Valentine. The 
campaign also encouraged consumers to complete the sentence =I love Aldi because...‘ directly 
onto Aldi‘s Facebook page to encourage positive brand feedback.  
Aldi also uses direct e-mails. These e-mails allow Aldi to communicate a variety of messages to 
target customers. For example, they can convey the =Swap and Save‘ message as well as to 
promote seasonal messages such as products associated with Pancake Day.  Aldi‘s website is an 
integral part of its below-the-line promotion. It features all of Aldi‘s key promotional messages 
as well as additional content to engage consumers. Examples include recipe ideas and weekly 
offers. Aldi developed the www.likealdi.co.uk micro-website to further encourage brand 
engagement with the 'Like Brands‘ TV campaign. The site provides consumers with the 
opportunity to upload their ideas for the next Aldi TV campaign. 
 95 
Aldi also uses a dedicated recruitment website to promote its employer brand messages and 
career opportunities. 
A further below-the-line method used to highlight the quality of Aldi‘s products is positive 3rd 
party endorsements. Aldi has entered over 1,000 of its products into awards such as Grocer 
Golds, Pizza and Pasta Awards (PAPA) and the British Frozen Food Federation Awards. In 
2012 Aldi was awarded =Best Supermarket‘ by Consumer Watchdog. It beat competition from 
Marks & Spencer and Waitrose. Further positive endorsements for production TV and in the 
press reaffirm the message that Aldi products are of the highest quality and also are great value 
for money. For example, Aldi‘s Christmas pudding was awarded runner-up and acknowledged 
as a 'bargain' in a taste test comparison in Good Housekeeping magazine. Effective public and 
media relations help to create positive press exposure. Aldi has secured record coverage through 
hard working and innovative media relations. Journalists from newspapers such as The Grocer, 
The Financial Times and The Times were invited for exclusive interviews with Aldi‘s Group of 
Managing Directors. They discussed record breaking sales results.  
Aldi: Creating value through the marketing mix 
Further coverage was gained through targeting key media at specific times with seasonal 
promotional messages. The =Swap and Save‘ campaign highlighted the savings available 
through shopping at Aldi at times when value for money is high on the agenda. This was 
particularly relevant with its =Back to School‘ and Christmas products. 
Conclusion 
Aldi has a distinct approach to retailing that has given it a competitive advantage in a crowded 
marketplace. Aldi‘s unique balance of the marketing mix enables it to provide high quality, own 
branded products at the lowest possible price. Aldi‘s innovative =Like Brands‘ and =Swap & 
Save‘ marketing campaigns are improving brand perceptions. They are aiding the achievement 
of Aldi‘s marketing objectives. The campaigns have increased Aldi‘s sales per store by +100% 
over 3 years through creating more loyal customers. Its multi-channel promotional activity is 
engaging consumers and creating positive feedback.  
Courtesy: The Times 100 Business Case Studies 
 
A. What is the goal of business? 
Fundamental goal of business is to make profit; this always need not be in terms of money but 
improved customer relations, goodwill etc.,  
What is goal setting? 
Definition of goal setting:  
"Establishing short or long term objectives, usually incorporating 
deadlines and quantifiable measures." 
Why is goal setting important?  
? Goal Setting is an important exercise for ensuring the appropriate 
performance.