Aldi’s Marketing Strategies For Organic Baby Wipes In The Indian Market

SWOT Analysis

The primary motive of this task is to provide a brief information about the marketing strategies that are adopted by Aldi while entering into the Indian market. Aldi is a biggest brand in Australia who offers retail and supermarket products to ample of customers around the world. In today’s competitive world, the company has decided to flourish its business actions and operations in the Indian market. Indian is a diversified and democratic country which is known as republic of India. If Aldi expand business in Indian then it can take ample of growth opportunities globally. The organic baby wipes product has been chosen in the task. The paper outlines that how the company uses SWOT analysis and marketing strategies to overcome the competitors in the foreign market. The future challenges and solutions also have been explained in the task. briefly.

Aldi is a common and well know brand of two German discount supermarket chains with having 10000 stores in more than 20 countries. The company was incorporated in 1946 by brothers Theo Albercht and Karl. It is noted that the firm has approx 2,500 stores in Northern, Western and Eastern Germany (Aldi, 2019). In today’s modern era, the company offers various retail and consumer products such as grocery products, bakery, fresh foo, Yougurt, String cheese, Red hot deal, baby wipes and organics. ALDI focuses on the quality and prices of the products to attract and retain various types of customers in the international market. Baby wipes products further are offered by the company to attract female customers in the competitive market. By limiting consumer choice and preferences, the firm has been able to save money in several ways (Jenkins and Williamson, 2015). The organization keeps labor costs low to maximize the customers across the globe. The core values of Aldi include honesty, openness, service, orientation, fairness, and friendliness (Aldi, 2019).

It is stated that the company has decided to enter into the Indian market to earn more revenue and uplift profitability globally. Therefore, various marketing strategies need to be used by the company while entering into the new market. SWOT stands for strengths, weaknesses, opportunities and threats. SWOT analysis is done by ALDI to identify and analyze the opportunities and threats of the market. The SWOT analysis for ALDI has been discussed below.

It is stated that baby wipes are being sold by the company in the global market. Organic baby wipes are free from toxic chemicals and it covers a host of reassuring standards. Thus, this will help to attract female customers in the global market. These baby wipes would be very sensitive and babies do have a better sense of smell (Grundy, 2017). The organic baby wipes also helps in improving and enhancing the skincare and softness. These types of baby wipes would be used by the mothers for new born babies. The organic baby wipes would help save the babies from various skin problems. These types of wipes are multipurpose and females can use these wipes for kids as like sanitizers.  Thus, ALDI can attract female customers in the Indian market for gaining competitive benefits and further it will help to meet the long term requirements and needs of the business. The quality of organic baby wipes is excellent as compared to normal baby wipes products (Parnell and Lester, 2008). Thus, the firm has decided to modify the baby wipes while entering into the Indian market. The product strategy is essential to expand and explore the business in the Indian market successfully and effectively. Along with organic baby wipes, the company can also offers some other products in Indian such as almond milk, yogurt, whole food and health and fresh food products. The products rendering by the company are cheaper as compared to other brands thus it can boost profitability and market share in Indian market. The production process and cost of the firm is controlled and managed by Aldi in a hassle free manner. Non-food items are also stocked by the company such as toiletries and sells musical instruments (Huang and Huddleston, 2009). It is analyzed that organic baby wipes products will have to be introduced by the company at low prices in Indian market.

Product Strategy

The segmentation, targeting and positioning strategy is necessary to build a dynamic image in the Indian market and to stand out over the rivalries globally. ALDI can use this marketing strategy to attract wide range of customers widely. The STP strategy for ALDI is discussed below.

Segmentation: ALDI segments its Indian market using various and innovative marketing strategies.One of the significant strategies that used by the company is segmentation. It helps in dividing the entire market into the different market segment. The segmentation is done by the company on the basis of demographic, geographic, physiographic and behavioral areas. In demographic segmentation, the company can target mothers with babies ages 0-3. Here the company can use segmentation by age and sex, they do this by showcasing commercial and effective with mothers in stores (Najafizadeh, Elahi, Moemeni and Lotfi, 2012). The company will also focus on the income level and social classes of users in demographic segmentation. The organic baby wipes has been able to maintain large and dynamic segment just because they are not expensive thus, middle and lower class people can also buy these products easily. Aldi will focus on the quality and features of organic baby wipe to attract middle and lower class people. In geographic areas, the company would analyze the locations and places in Indian market. It is noted that majority of mothers are working in these days, thus the demand for baby wipes is increasing day by day. The organic baby wipes are very sensitive and provide extra protection to the babies (Sultan, Wong and Sigala, 2018).

Targeting: ALDI will target the young dads and mothers who are between the age group of 25-35,  which are having their first child. It has been analyzed that the company will identify and analyze the needs, requirements and choices of middle and lower class people in Indian market to increase and enhance the sale of organic baby wipes. The company has decided to promote and encourage these products by using effective and dynamic advertisement and promotional strategies. By using targeting strategy, ALDI will further able to fulfill its long term mission and vision in the Indian market. Aldi sets the low prices of organic baby wipes to attract and retain mothers who are from rural and urban areas (Burke, 2011).

Positioning: By using positioning strategy, ALDI could able to position itself as a brand in the Indian market. The message of quality and product value still rings a bell in the eyes of the customers globally. By informing and educating wide range of customers in Indian market, Aldi can boost and enhance its brand position in the market. Positioning strategy helps in gaining loyalty and trust among the customers in regards organic baby wipes. The positioning strategy is suited for environment and atmosphere of the Indian market. In this way, segmentation, positioning and targeting strategy would help Aldi to overcome the competitors in the Indian market. With the help of competitive pricing policy, the key target audience will get the real value of shopping from Aldi in Indian market. Along with this, refund policy can also be used by the organization to understand and evaluate the needs, requirements and desires of the female customers in the foreign market. The refund shall be done on regular basis if the customers are not fully satisfied with the products (Ekmekçi, 2010).

Segmentation, Positioning and Targeting Strategy

One of the significant and vital strategies that can be used by the company is pricing strategy. This strategy helps the firm to distinguish its products from the competitors globally. There are ample of strategies of pricing of organic baby wipes (Zielke, 2010). The ample of strategies include competitive pricing, strategic pricing and market penetration. The strategy that can be applied by Aldi in Indian market is competitive pricing. By using pricing strategy, the company is able to provide products at low and cheap prices (Berman, 2015). It needs to offer great leverage for negotiating the best possible prices for the products and services. Competitive pricing strategy that is adopted by the firm helps in attaining ample of competitive advantages in Indian market. The pricing policy that made by the company is to capture maximum market share in the international market. Competitive pricing policy further helps the firm to be one of the biggest supermarkets in India. This policy is simple and transparent to maximize female customers (Grewal et al, 2010).

 It has been reported from the various analysis that Aldi has separate distribution centers in their operating countries. Thus, the company has to invest huge amount on the distribution channels and centers in order to manage and handle their business in Indian market successfully and effectively (Obitz, 2009). The company can use supply chain and logistics management to attract capture maximum target audience in India. The suppliers need to keep the delivery roots short and they can use best war housing techniques and methods for supplying the organic baby wipes products to the customers across the globe. In order to distribute the products effectively, the company has to appoint talented and skilled workforce at the stores. The qualified workforce could able to understand and identify the needs, choices and preferences of the female customers internationally.

One of the vital and fundamental strategies that could be implemented by the company is promotional strategy (Amato and Amato, 2009). In order to maximize its profitability, the company has to increase and enhance the market share. The promotional and advertisement strategies further will help Aldi to gain customer loyalty and trust. By using promotional strategy, the company is able to increase and enhance the Awareness among the female customers in the Indian market. The company can further use social media channels like TV, internet and facebook to promote organic baby wipes in the Indian market. No company can grow and expand business without using promotional strategy effectively and successfully (Kimpel and Friedrich, 2015).

It has been analyzed that if Aldi enter into the Indian market then various problems could be faced by the company. Competition is one of the biggest problems that can be dealt by the company. The competitors include D-Mart and Reliance fresh that are operating and enhancing the business in India carefully. Along with this, legal or regulatory risks also can be faced by the company while entering into the Indian market (Turban and Wolf, 2008). The changing or unpredictable regulations would affect the brand image of the firm adversely. Although, India is a stable and effective democratic country but still various political risks will be entertained by Aldi while operating business. The legal laws, policies and regulations can affect the financial position of the firm in a large extent (Voigt,  Buliga and Michl, 2017).

It is stated that Aldi can use various techniques and tools to measure and identify the future risks and challenges in the competitive market. Pestle analysis is done by the company to identify and evaluate the risks, challenges and threats of the market in near future. A market survey and research is conducted to further eliminate and reduce the issues and challenges of the market. Effective and dynamic planning is done by the company to analyze and evaluate the products, policies and prices of the competitors. The company can further use an effective performance management system to analyze and identify the skills, potential and performance of the employees in the Indian market (Lce, 2018). The effective and unique performance management system is essential to identify and evaluate the performance and productivity of the employees in a hassle free manner. Apart from this, porter five forces analysis is done to attain the rivalries benefits in the international market (Amritt, 2018).  

Some of the recommendations for Aldi have been detailed below.

• It is recommended that Aldi should focus on the dynamic and unique distribution and promotional channels to cater organic baby wipes to the customers across the globe.
• Along with this, unique and effective business level strategies and corporate level strategies shall be used to compete with rivalries in the Indian market.
• An effective and potential target market shall be identified and analyzed by the firm to maximize the sale of organic baby wipes products in the international market.
• Political and legal system of India must be evaluated to handle and manage the future risks and challenges.
• Talented and skilled should be appointed to attract and retain wide range of women in the Indian market.
• Ansoff matrix is one of the significant strategies that shall be used by Aldi to penetrate entire market globally.

Conclusion 

It is concluded from the above mentioned analysis that Aldi is a well known Australian retail company that provides ample of retail and consumer products to the customers across the globe. The firm has decided to enter into the Indian market for introducing organic baby wipes for kids carefully. Aldi needs to focus on the women customers to bring the organic baby wipes in India so that they can maximize returns and revenue globally. The above analysis shows that how the company uses marketing mix strategy to improve and enhance the products in the Indian market. SWOT analysis and market survey are done by the company before initiating the business functions and activities in the Indian market. Apart from this, future risks and challenges of the market are identified and measured to expand and flourish the business internationally. At the end, some recommendations have been presented to maximize revenue and expand business in Indian market.

References 

Aldi.2019. Aldi history[Online]. Available from https://corporate.aldi.us/en/aldi-history/ [Accessed as on 3^rd October 2018].

Amato, L.H. and Amato, C.H., 2009. Changing retail power and performance in distribution channels. International Journal of Retail & Distribution Management, 37(12), pp.1057-1076.

Amritt.2018. Common risk of doing business in India[Online]. Available from https://amritt.com/services/india-business-training-workshop-and-education/common-risks-of-doing-business-in-india/ [Accessed as on 3^rd October 2018].

Berman, B., 2015. How to compete effectively against low-cost competitors. Business Horizons, 58(1), pp.87-97.

Burke, S.J., 2011. Competitive positioning strength: market measurement. Journal of Strategic Marketing, 19(5), pp.421-428.

Ekmekçi, A.K., 2010. The importance of product positioning and global branding for sustaining competitive advantage within the companies’ global marketing strategy. Chinese Business Review, 9(4), p.17.

Grewal, D., Janakiraman, R., Kalyanam, K., Kannan, P.K., Ratchford, B., Song, R. and Tolerico, S., 2010. Strategic online and offline retail pricing: a review and research agenda. Journal of Interactive Marketing, 24(2), pp.138-154.

Grundy, T.D., 2017. Dynamic Competitive Strategy: Turning Strategy Upside Down. Routledge.

Huang, Y. and Huddleston, P., 2009. Retailer premium own-brands: creating customer loyalty through own-brand products advantage. International Journal of Retail & Distribution Management, 37(11), pp.975-992.

Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis. Routledge.

Kimpel, M. and Friedrich, C., 2015. The right pricing strategy for offline retailers when expanding into the online sales channel. Journal of Business and Retail Management Research, 9(2).

Lce.2018. Three ways to measure success of a continuous improvement initiatives [Online]. Available from https://www.lce.com/Three-Ways-to-Measure-Success-of-a-Continuous-Improvement-Initiative-1919.html [Accessed as on 3rd October 2018].  

Mbaskool.2018. ALDI SWOT analysis, competitors &USP[Online]. Available from https://www.mbaskool.com/brandguide/lifestyle-and-retail/2041-aldi.html [Accessed as on 3rd October 2018].

Najafizadeh, N.S., Elahi, M., Moemeni, A. and Lotfi, Z., 2012. A model for brand positioning of hygienic products using the most effective factors on competitive position and perceptual map technique. African Journal of Business Management, 6(27), pp.8102-8117.

Obitz, C., 2009. Supermarket differentiation in the UK: A theoretical and empirical investigation. Diplomica Verlag.

Parnell, J.A. and Lester, D.L., 2008. Competitive strategy and the Wal-Mart threat: Positioning for survival and success. SAM Advanced Management Journal, 73(2), p.14.

Sultan, P., Wong, H.Y. and Sigala, M., 2018. Segmenting the Australian organic food consumer market. Asia Pacific Journal of Marketing and Logistics, 30(1), pp.163-181.

Turban, M. and Wolf, J., 2008. Comparing the Strategies of Shop Operation Internationalization of Limited-line Grocery Discount Stores by Aldi and Lidl. Duesseldorf University of Applied Sciences.

Voigt, K.I., Buliga, O. and Michl, K., 2017. Striving for Customer Benefit: The Case of Aldi. In Business Model Pioneers (pp. 11-24). Springer, Cham.

Zielke, S., 2010. How price image dimensions influence shopping intentions for different store formats. European Journal of Marketing, 44(6), pp.748-770.

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