Aldi is a family-owned discount supermarket chain based in Germany. The company has more than 10,000 retail outlets in over 20 countries, and is still expanding its operations to other niche markets in Europe. In line with technological developments and contemporary marketing strategies, Aldi uses digital marketing tools to create brand awareness, retain old customers, attract new clients, enhance its publicity, interact with clients one-on-one, and improve its customer care services. In this regard, the company is active on social media pages, such as Facebook, Youtube, and Twitter. Using Google+, it also sends emails to subscribers to inform them of new products in the market, significant price-cuts in its chain stores, promotional giveaways, the opening date of new branches, managerial changes, employment opportunities, and many more social and business issues. Technology has changed the company’s digital marketing operations, and Aldi adjusts quickly to offer top-notch customer services to realize significant increase in sales. Overall, digital marketing has helped the company to get recognition, maximize profits, and engage with customers directly.
Digital Marketing Case for Aldi
Aldi is one of the largest private supermarket chains in Germany. The company is a discount supermarket chain that pays close attention to cost control, customer relations, and technological advancements, and growth. Its operation model has remained unchanged since it was started in 1913 in Essen. Aldi focuses on indispensable investment to give consumers value for their money. For instance, it only adds a small percentage to the procurement price, thereby reducing the overall cost of operation and prices of its products in the widespread stores. Unlike competing brands which operate 24 hours a day, Aldi is open for 12 hours only; a tactic that makes Aldi unique in the retail market (Baltes 2015, p. 111). The floor size is small compared to the ones of its competitors, and has a small layout displaying products to customers. Strategically, Aldi considers the size of the population while choosing a location for its stores. Moreover, its sales philosophy differs sharply from other brands. It sells products that equal to brands and buys products in bulk from manufacturers, which allows it to get discounts and sell at lower price. The low price strategy works for the company in terms of high sales, publicity, and profitability.
In its digital marketing initiative, the company uses Facebook, Youtube, Twitter, and Google+ platforms to reach its clients real-time. The company has also developed an online app where customers can make orders, complete payments, and check new offers in the company’s stores. Basically, marketing refers to creating awareness about certain products to consumers, which Aldi does very well through digital marketing besides other traditional promotional initiatives. Overall, digital marketing has improved the image and brand of the company, and has helped in accessing more clients and increasing sales to maximize profits.
Certainly, companies use various avenues to attract new customers and retain old ones. For instance, marketing experts insist on the four P’s of marketing, including product, price, promotion, and place, to conquer a market and establish a strong brand name. The four P’s are in line with the digital marketing initiatives that Aldi assumes to attract customer (Taiminen & Karjaluoto 2015, p. 633). The company’s digital marketing strategy is essential in the promotional plan and helps in achieving business targets. The digital marketing strategies Aldi uses has allowed it to remain relevant in the industry, improve sales, tackle customer-related issues, and keep in constant touch with its client base.
The Use of Digital Messaging System – Emails
Aldi uses email to send important information and promotional gigs to customers about new products. Every morning, it sends customized emails to registered customers using an established database. It notifies clients about existing offers and directs them to the stores. The emails also list products that will be available in the stores the whole week. In its IT department, Aldi has a team that prepares emails and sends to all the customers in the database (Dodson 2016, p. 12). This digital marketing strategy has proved useful to Aldi because it can reach more people easily. Clients on the email list receive up to 96 emails in a year describing new products (Fitzpatrick 2019, p. 1). Emails are well laid out to meet customer objectives and keep them interested. The brand is highlighted well, the product is mentioned, and its competitive price is listed. Emails are among the best converting digital marketing channels the company has used effectively to enhance its publicity (Holliman & Rowley 2014, p. 268). For instance, the company sends regular updates to email subscribers to build and nurture relationships. It provides value with email updates to foster trust and turn subscribers into customers. Results are attained using emails when all the list subscribers are known and contacted by the company.
On the other hand, the company promotes its occasional special buys through emails and other digital platforms. In addition, it breaks its products and marketing messages into sets and themes based on holidays or events. Moreover, the emails are broken down to target particular market segments, such as men or women, depending on the type, quality, and usability of the product in question (Fitzpatrick 2019, p. 1). Good enough, the company does not recycle products featured within a year. Apparently, Aldi realized that it needed to have a relationship with individual subscribers through a digital platform for best marketing results.
Use of Social Networking Sites (Social Media)
Aldi uses social media to promote its products and sensitize it clients about new products in the market. For instance, the company has a Facebook page that it uses to promote its products and brand. Moreover, it offers incentives and encourages followers to comment on the page. Aldi is active on Facebook and seeks customers’ views on new products and what they want to be done differently (Holbrook & Hulbert 2012, p. 706). The social media team within the company’s IT department posts and comments daily on the Facebook page. The approach is good for the company because it encourages engagement between Aldi and customers. However, the tactic can be costly since the company is constantly giving vouchers to attract customers. One post attracts more than 1000 likes, and this shows that customers are interested in what Aldi is offering. The company plans its social media comments around events or holidays. For instance, recent posts on the Facebook page is about BBQ, a cultural event in the British calendar. It offers products relevant to clients to increase sales. Aldi has used this strategy for a while and has proved successful. Furthermore, it uses common events and national days to promote its products and offers. Observably, Facebook is an effective digital platform that Aldi can use to enhance is market penetration.
Aldi also uses Twitter as a digital marketing tool to interact with its perceived customers (followers) and create awareness about its products and offers. It has almost 200,000 followers on Twitter and uses the platform for product and brand promotion. The company encourages followers to use specific hashtags to engage with their tweets and reach many people (Royle, 2014, p. 65). In the past, it created hashtags, such as #super6silliness and #Bathroomballad to spread its marketing messages. The strategy is useful for the company and shows that humor is vital for social media interaction. Furthermore, it runs regular competitions on its Twitter page by giving followers a chance to win products by retweeting messages. It also tweets product suggestions and recipes alongside giveaways and competitions. Apparently, Aldi keeps followers engaged by using interesting hashtags that appeal to them.
Another digital marketing platform that Aldi uses to interact with customers is Youtube. Many people use Youtube nowadays, which makes the platform an effective digital marketing tool. Many companies are hiring content creators to market their products based on the number of followers one has. Some companies also have channels on the platform where they market products and interact with the audience. Aldi has not left behind this digital wave and is an active participant (Fitzpatrick 2019, p. 1). It updates its Youtube channel every month with interesting videos that relate with customers and connect with other marketing campaigns. It uses interesting short video clips to attract viewers and encourage them to share their videos with their friends.
Videos are placed in categories to prevent confusion because the company has more than 2000 subscribers on Youtube and is growing. Youtube is part of Aldi’s digital marketing strategies in the modern age (Killian & McManus 2015, p. 539). Technological advancement gives many people access smartphones, which they use to browse the Internet. Aldi admits that it was difficult at first keeping up with technological changes but adjusted quickly.
Aldi’s Mobile Digital App
Aldi has an engaging mobile app that it uses to reach customers. The app can be downloaded freely from the Google’s Play store, Apple’s App store, and other online platforms. Currently, many people prefer online food shopping, and apps have been developed to create convenience for buyers. These days, going to the supermarket is almost a thing of the past for many households in Germany. Instead, they prefer home deliveries, and apps come in handy. Mobile websites and apps have become important tools for grocery shopping and create convenience for customers (Taiminen & Karjaluoto 2015, p. 651). However, there is a difference between the most effective websites and apps to use to buy grocery. Aldi comes second after M&S for having the most engaging grocery app in the Germany.
How Aldi Balances the Marketing Mix with Digital Platforms
Aldi has a traditional marketing mix, realigned with digital platforms, to enhance publicity of the company and promote the organization’s products effectively. As the company focuses on offering quality products at the lowest price possible, its digital marketing platforms communicate the same. It values every customer, from vegetables and fruits buyers to electronics shoppers. Choosing the price is one of the most tasking things to do in a marketing mix. Aldi uses different pricing strategies and communicate them through facebook, app, and twtter to acquire and retain customers (Fitzpatrick 2019, p. 1). Moreover, it uses market penetration approach to navigate the industry. It communicates new products on social media so that it can enter the market quickly and gain market shares fast (Katherine 2012, p. 86). Certainly, Aldi uses strategic digital marketing to emphasize the quality and brand positioning of its products.
Through digital communication and marketing platforms, Aldi gets great leverage for negotiating good prices with suppliers, especially when it buys in large quantities. Buying in bulk allows the company to pass its savings to customers. For the company to meet its communication target, it ensures promotional activities and digital marketing efforts are balanced according to the market mix. For example, it communicates messages about the quality of products to customers to maintain their loyalty. Hence, all the elements in the marketing mix receive attention. The brand ensures that products are of high value and the company uses campaign strategies to reach customers. Promotion helps in improving brand image, increasing demand for goods, enhancing brand awareness, and explaining why the products are of top-notch quality (Holliman & Rowley 2014, p. 269). Certainly, digital marketing gives Aldi control over communication and how to improve sales through third-party endorsements and media relations.
1. What is Digital Marketing and how does Aldi use it to effectively reach its customers?
2. What are the digital marketing concepts that Aldi uses to grow its market base and enhance its publicity?
3. Are digital marketing concepts effective?
4. What are other marketing tactics Aldi can incorporate in its digital marketing strategies?
Answers to the Questions
1. Digital marketing is the use of technological platforms and online media to communicate responsive and marketing information to the public. Aldi uses digital marketing effectively to enhance its publicity and maximize profits. It uses facebook, twitter, youtube, and emails to execute promotional initiatives. Its communication strategies are of high quality to attract customers and wade off competition. The company understands its market segments and coins marketing messages customized to meet certain needs.
2. The digital marketing concepts that Aldi uses to grow its market base and enhance its publicity include Twitter, Faceboo, and Emails. The company engages in promotional activities to create brand awareness and customer interaction. Aldi uses various marketing concepts, such as email marketing, active Facebook, Twitter, and youtube pages, to penetrate the market.
3. The digital marketing concepts are effective for Alsi. The company realized the need to change its marketing communication strategies owing to technological advancement. Many people worldwide have access to the Internet, and this has changed how marketing is done. Aldi uses social media platforms to engage with followers and remain relevant. It would be catastrophic for Aldi not to use social media platforms in the modern age. The company regularly posts on its pages to inform customers about giveaways and competitions. It also uses the digital platforms to educate the audience about its products and why they should buy from its shops.
4. The other marketing strategies Aldi can add to its digital marketing platforms include tagging its promotional events with the marketing messages. For instance, Aldi should marks sales events and holidays to help it offer products that align with customers’ interests. The company has a large following on social media pages, and sales have increased over the years. It has gained massive success using digital marketing strategies because many people use social media platforms and are receptive to digital marketing. Other marketing strategies Aldi can add to the digital marketing efforts include influencer marketing and online advertising. In addition, the “pay per click” will help the company reach more clients and make them prioritize its content over others. Influencer marketing is where the company pays someone who has many followers on social media to market their products.
Aldi uses digital marketing to create brand awareness and interact with the customer. Its digital marketing strategies include using social media platforms such as Facebook, Twitter, and Youtube, marketing mix, and emails. Using these strategies have enabled the company to retain old customers and gain new ones. Digital marketing concepts used by Aldi are effective because they have helped the company remain relevant in the industry.
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