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    Unit 8 Marketing Essentials Assignment Level 5 UKCBC


    The concept of marketing can be defined as a social process that is mainly undertaken by every company in order to create and exchange value with their target audience. It deals with satisfying customer needs and want profitably (Arguello, 2013). It includes activities related to advertisement, selling, packaging etc. that helps in transferring the goods from producer to ultimate consumer. Marketing umbrella usually comprises of public relation, advertising, sales and publicity. The chosen organization for this report is ALDI, which is a leading supermarket store in Germany that mainly deals with providing goods and services to potential buyers at relatively discounted rate. The report covers different roles and responsibilities of ALDI’s marketing function, how other organisational departments are inter-related with marketing function and marketing mix of two companies and lastly marketing plan that represents their marketing tactics throughout a year.

    Task 1

    P1. Roles and responsibilities of different functions of marketing

    Marketing is a social process by which Organisations and individuals obtain what they need and desire through creating and exchanging values with others. It mainly deals with identifying, forecasting and satisfying customer requirement profitable. It stimulates the interest of potential buyer and enables them to purchase that particular product or service to facilitate their needs more effectively. Organisations make goods and services in order to earn high profits but for this they must sell their products to ultimate consumer who actually wants it. It serves as a bridge between company and potential buyers as it mainly emphasizes on meeting the necessity of both parties in a proper manner. With the help of marketing, business can take the advantage of high competitive edge in overseas market. Following are the various roles that ALDI has performed towards their different marketing function which are discussed as below:

    1. Marketing Information System: This system is mainly used by companies in order to determine the actual needs and requirements of target customer which keep on changing frequently (Baker and Magnini, 2016). It refers to the system that assembles, analyse and distribute information concerned with distinct choices of customer to administrator who further aid in making effective decision for the entity. According to Henry, in order to manage the organization effectively, it is important to manage their future as well and for that it is required to handle the information effectively in a structured and systematic manner. ALDI is getting hold of high competitive advantages because of this system as it enables them to identify what are the current likes and dislikes of their target audience so that they can fulfil them by providing with the same. For example: Through this system, the company figured out that people get easily attracted to such products which are available at discounted or lower rates.
      2. Product or service management: Once the company is done with identifying its target market and setting the price for their product or services, the next step is to effectively manage it (Blythe, 2012). This includes communicating to the buyers, responding to their needs and maintenance of goods and services. ALDI is a leading discount Supermarket chain that offer products or services at relatively lower or discounted rate. By keeping low price of the product there is certain assumption that it is of poor quality. In order to eliminate this perception of customer, the company decided to take feedback from buyers. As a result, the company attained positive response and built its goodwill amongst consumers.
    2. Distribution channel: It is related to companies selling strategy of the goods and services to the consumer. ALDI buys product in bulk from their suppliers and they stock up it in their warehouses. It mainly sells its products through company’s outlets and mobile application.
    3. Financing: It takes money to make money. From a business owner’s view, it is the most important marketing function as it deals with how a firm is going to manage their funds or what are the sources available in the market which can provide adequate funding for smooth and effective business operation. ALDI manages their funds through investment, share capital, loans, angel investors etc.
    4. Promotion: It deals with how company introduced or advertise their products or services in the market. It creates awareness among customers which stimulate them to buy that following product or service. Mostly, it is the voice of the organization which effectively sends their brand message amongst target audience in a clear and profound manner. In order to target the right audience, it is essential to have structured marketing and promotional strategy to give best solution in satisfying customer needs. The common tool of promotion includes personal selling, sale, publicity and advertisement (Brassington and Pettitt, 2013). ALDI promotes their product through social networking sites such as face book, Instagram etc. In UK, Australia and US, they advertise their product and services through electronic, digital and print media. In addition to that they also offer some super buyer’s offers that help in achieving the attention of customer effectively.
      6. Pricing: Setting the right price for the product or services can sometimes become challenge for the company. If the price is too high, then there might be chances that customer may shift to some another brand who serves the same product but at lower cost. ALDI gained strong customer base because it offered low price along with quality product to buyers (Brooks and Simkin, 2011). The company mainly used unit pricing strategies for groceries product so that the customers can easily compare their product and prices with that of other competitors available in the market.
    5. 7. Selling This is closely related with the marketing function. Once the company is done with identifying the ultimate needs and desires of target audience, they become liable to deliver right product at right place within stipulated time frame that satisfies their need in a cost effective and timely manner. Selling concept deals with positioning of business entity in a systematic manner to sell maximum number of products. It is the only way through which products can be delivered among target audience who actually needs it. Thus, selling function aims at maximizing overall profitability ratio of the company by promptly meeting the requirements of customer. ALDI sells their product through its outlets, online and by home delivery.

    Task 2

    P2. The way roles and responsibilities of different organisational department is inter-linked with marketing function

    Organisations are using the concept of marketing so as to identify diverse requirements of customer that further help them in making effective decisions towards satisfying numerous choices of their clients. With the help of marketing, a company can achieve both its long as well as short-term objectives in an effective and efficient manner. The heart of every company lies in its marketing process. This not only helps the business entity to promote its product in the market but also delivers it to the potential buyers as per the requirements. Also helps to assist inmanaging and controlling the functionality of other organisational departments (Brooks and Simkin, 2012). Different departments such as human resource, sales, IT, research and development plays a significant role in producing and promoting respective goods and services in the given market that yields profitability ratio for the firm.

    Marketing and Human Resource Department: The main function of HR department is to recruit and select most talented and skilled employees for the company who assist in achieving their objectives effectively. A business mainly emphasizes on attracting profitable customer to attain decent number of sales. Thus, in order to get such sale figures, company must hire competent employees (Cabrera and Williams, 2014). With the help of marketing tool, HR manager of ALDI attracted large number of candidates and stimulate them to apply for latest job vacanies in the company. Generally, there are two sources namely internal and external, through which firm can recruit candidates. Marketing function provide assistance to external source of recruitment. With its help, company can endorse about latest vacancy on various channels to seize the attention of numerous applicants. For example: If there is any vacancy in ALDI, then can post on social media or company’s websitfthe same.

    Marketing and information technology department: ALDI uses advance and innovative technology which aid them to capture large market share. Innovative technology assistant formulating plans and policies more effectively. The company had launched its mobile application and website for both company and customer to connect with each other easily. In addition, it assists in building strong brand image over rivals in the market. Withthe help of IT department, marketing manager is able to set up single viewpoint of customer which mainly outlays busting my profile, past purchasing pattern, digital media interaction and other important information that is concerned withthe buyer but you might help ALDI in taking effective decision regarding fulfilling their requirement.

    Marketing and sales department: These two act as mediator between production and customer. Consumer generally discuss their needs or desires related to particular product with the sales manager of the company who further passes this information to other different organisational department such as manufacturing so they can start make product as per the requirement. With the help of this department, accompany can effectively convert the demand of client into particular product specification. Moreover, with the assistance of different types of promotional tool sales manager can alert production department according to the increase demand of specific goods in the market. (Caragher,2016). Therefore, both sales andmarketing function are interlinked with each other.

    Marketing and Finance department: Marketing and finance are considered as two main pillars of the company on which the entire profitability of the firm depends. The term finance consists of feasibility of cost or project whereas marketing comprises of sales target, sales volume, advertising, publicity etc. Without suitable advertisement, the sale of a product cannot be increased and without sales, business cannot make adequate profit (Coast, 2014). Therefore, in order to increase overall profitability ratio of the firm, marketing function plays significant role. With the help of marketing, ALDI measured its internal and external sources through which company arranged its sufficient funding which was required to carry out day-to-day business operation in an effective manner.

    Marketing and Research and Development department: In modern era, marketing is often referred as R&D in terms of product or services that fulfil the demand of end users. Earlier, demands of buyers were usually interpreted through traditional marketing techniques such as focus group, observation, survey etc. However, in today's era, companies use social media platform to determine the actual likes and dislikes of target audience that keeps on changing frequently. According to the statistic report, 85% of the population having at least one social media profile on which day are highly active and enough to put about its latest choices. For example: ALDI figured out that the customers were easily attracted towards such products that are available on discount or at low cost. This is why ALDI offered its product and services at relatively discounted rate.

    Marketing and Customer Service Department: In order to yield high profitability ratio, it is largely important to fulfil customer needs. Most of the marketers are taking the help of social media platform to provide better customer services to end users. With the help of marketing function, company is able to have better understanding regarding consumer personas. ALDI provides product at discounted rate which makes customer think that they might be selling low quality products (Daniel, 2011). Therefore, to clear their image, the company started taking client’s feedback and putting it on different social networking sites. This helps in building goodwill and brand image as well

    Task 2

    P3. Marketing mix of two different organizations

    ALDI rarely change its food product but keep on experimenting with its non-food items. For example: During winter it offers warm camping gear and snow gear, thus changing its product line as per seasonal demand. In Germany, Australia and Netherlands ALDI has a mobile virtual network operator. The Company have a strong customer base because of its cheap price and quality that they offer under their own label which aren't available with the other competitors. In addition to that, ALDI is the only store that offers goods and services at same prices for groceries items throughout the world.

    Therefore, ALDI and LIDL both organisation are use marketing mix elements which is important and essential for them to innovate their new products and services at marketplace. It is also essential for both businesses to maximise customer base in the company by providing quality products and services at reasonable price.





    ALDI claims to offer affordable food product that are of same quality as compare to other branded product. The product sold at ALDI's are sourced from selected suppliers in bulk quantity and then branded under their own private label so as to possess great control over the production. Other than beverages and food products, it also stock fresh vegetables and fruits, electronic products, household goods, stationary, clothes and soft tools.

    Tesco is a retail company which delivers general utility products like clothes, home utility appliances, electronic equipment’s etc. Tesco is offering a wide range of products through which it can attract many customers in no time which helps it to generate high revenue and earn more profit. General utility goods are used by the world, which gives an opportunity to diverse their business in different countries. Due to effective business activities and efficient management Tesco can create its own brand image.


    It mainly uses unit pricing strategy for groceries items so that the consumer can easily compare it with other brands. In case of high competition, they use competitive pricing strategy in which they keep the product prices below the competitors so as to grab the attention of large number of buyers. In addition to that they also uses psychological pricing in which the offer product is presented in an intelligent way such as 3.78$ instead of 4$.

    Tesco follows pricing strategy of economies of scale which enables the company to charge less for its products but produce and sell large number of units of their products and it also offers schemes of discount coupons and gift vouchers through which it attracts many customers and hence results in achieving high revenue targets.


    ALDI group has more than 10000 stores in 20 countries and roughly every week a new store opens in Britain. The company gained high competitive advantage for itssimple store layout. They procure the entire product in bulk quantity from different suppliers and store them at local warehouses. It also ensures that product quality is highly maintained in warehouses. Along with this, it ensures minimum waste disposal during transportation of products and uses eco-friendly equipment in its store. Also tries to maintain a regional appearance and thus name its stores on the basis of the country. For instance, In Switzerland, ALDI is known as ALDI Suisse. Other than physical stores, the company has its online presence as well which allows consumers to check product details and locate the nearest store conveniently.

    Tesco distributes its products not only by manual tools but also with the help of online tools. Tesco has created webpages where customers can order their products with a click which is beneficial for company and convenient for customers too. Tesco maintains a unique position in customer's mind and in industry. Thus it can generate more profits.


    ALDI's promotional activities are comprehensive. The company spends very negligible amount for promoting their products. In fact, in Germany, it does not have its marketing department. It offers "Super Buy offers” that are only available till the stock lasts. In UK, US and Australia, they promote its product by using print, digital and electronic media. Moreover they also make an extensive use of email marketing as well to aware customers about new product or "special buys" offers

    Apart from manual and digital promotion, Tesco also offers their club cards which provides services of discount if goods are purchased of high value. They uses attractive and innovative promotional; strategies to attract more customers so that they can earn trust and interest of buyers to ultimately earn high revenues and more profit.


    The company has lower customer service as compared to its competitors. This is mainly because its employees help the consumer in selecting the product. Also because of its store layout which is divided into proper sections which automatically reduces the number of workers needed or required on every floor. ALDI generally pays higher to its workforce and provide job training to new workers.

    Tesco appoints highly skilled staff which can convince prospect customers to buy the products as Tesco is not a labour intensive company but they also need managers who can manage and motive their employees to work more efficiently.


    ALDI gained popularity by its complete layout which helps the customer to find products hassle free. ALDI's customers select product on their own which automatically decreases the number of employees required to assist them. Moreover, the company keeps high quality product preventing buyers in getting confused. Their products have large barcodes for quick identification which saves time and energy for both consumer and employees.

    Tesco deals in delivering various products, due to diversity in variety of their products, company has appointed staff which can guide the customers on which product is appropriate for them and can aware them about benefits of those goods. Tesco uses a customer friendly process to achieve their goal of customer satisfaction which lead them towards profit earning.

    Physical Evidence

    The company globally gained popularity for its simplest business process, global pricing, store layout and standardization. Almost 85% of the stock at its stores has items under their own private home brand and the rest they are offering are from well-established and recognised brands. They are providing their product at generally 30% cheaper rates and their everyday low prices strategy remains the same globally.

    Tesco maintains different shelf for various products in order to help customers in finding what they want, in minutes.

    Task 3

    P4. Marketing Plan of ALDI

    Marketing Plan is a business proposal involving blueprints of firm’s marketing strategy over a specific period of time. It consists of vision, mission, SWOT Analysis, STP, marketing mix, marketing budget and controlling and monitoring.

    Company Overview: ALDI is a leading discount Supermarket Chain operates in 20 countries with more than 10, 000 stores. It is a Germany based company and was founded by brothers Karl and Theo Albrecht in 1946. This mainly deals in food, beverages, household goods and sanitary articles.

    STP Approach

    • Segmentation: Consumer looking out to purchase all grocery items at competitive prices.
    • Targeting: Households
    • Positioning: ALDI gain popularity for its own private label product. It is strongly placed in Germany and now trying to establish in overseas market

    SWOT Analysis:


    • Claims to offer high quality products
    • Offers goods at discounted rate
    • In Germany, market share is strong with more than 2500 stores
    • Operating cost is low as compare to other competitor’s brand, who gives a high competitive edge in the market.
    • Strong customer and market base in Europe, UK and Australia.
    • Currently, the company is operating in more than 20 countries.
    • Gain high competitive advantage in overseas market because of its store layout, global pricing and simple business process.


    • Market presence is still relatively low as compared to other well-established competitor’s brands.
    • It hasn’t been able to impact global market because of its low presence in overseas market
    • Criticism faced due to bad and cheap quality products offered.


    • They need to spend more in advertising in order to beat competition that exists in the market.
    • The company need to grow its operations in developing countries like Asia, Africa etc.
    • Must use the advantage of social media platform as well, ALDI can easily increase the number of their target audience.


    • It is not suitable for buyers who are looking for complete shopping experience.
    • ALDI’s private label can easily be tossed away by other competitors existing in the market.
    • As the company does not have a marketing department in Germany, rivals can take the advantage and seize the attention of ALDI’s target audience which may affect its overall profitability and growth.

    Marketing Mix:

    1. Product: ALDI offers products at relatively low or discounted rates. They purchase goods in bulk quantities from supplier and store them in their warehouses. Other than food products, it also offers non-food items include clothes, stationary, electronic products, soft tools, fresh fruit and vegetable and health and beauty products.
    2. Price: The company gained popularity for its unit pricing strategy which is user friendly to find products. In addition, they adopted competitive pricing strategy as well as they offer their product to end user at comparatively low rates compared to its competitors.
    3. Place: Currently, the company is operating in more than 20 countries with over 10, 000 stores all across the world. All the product that they offers purchases in bulk quantity from suppliers and store them in warehouse ensuring all the time their quality as well. Other than its physical store, ALDI’s products are also available on online application.
    4. Promotion: ALDI spends very less on their promotional activities. They believe that their unique pricing strategy is enough to seize the attention of customers. The only offer they provide is “Super Buys” offer. However, in UK, Australia and US they are promoting their products or services through various promotional channels such as electronic, print and display media.

    Marketing Budget:

    Marketing budget



    1st year

    2nd year

    3rd year

    4th year

    5th year

    Initial money


















    Marketing outlay








    Sales publicity






    Direct selling












    Monitoring and Controlling: At this stage, marketer of ALDI needs to measure if all the activities are going on effectively or not (Desai, 2013). If any variation is found, then it should be solved by applying best possible solution.


    According to the above mentioned report, it can be concluded that marketing function plays a significant role in organisational growth and success. The heart of every business lies in its marketing process. With the help of this concept, companies are able to fulfil customer requirement in an effective manner which in turns creates higher profits for them. Marketing function not only assists in generating higher profitability ratio but it also plays a key role in the smooth functioning of other departments as well. In addition to that, firm can take the advantage of high competitive edge in the market because of marketing function.


    • Arguello, N., 2013. Secondary marketing research certificate: library collaboration with the college of business and marketing faculty. Journal of Business & Finance Librarianship. 18(4). pp.309-329.
    • Blythe, J., 2012. CIM Cowsebook Marketing Essentials. Routledge. 
    • Brassington, F. and Pettitt, S., 2013. Essential of marketing. Brooks, N. and Simkin, L., 2011. Measuring marketing effectiveness: An agenda for SMEs. The Marketing Review.

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