Aldi Market Report

Essay, 2017

9 Pages





Marketing Environment





The success of any business or company depends on the success of its marketing strategy. It is important to note that most business aspects rely on successful marketing strategy. Marketing in understandable terms is the offering of right products at the right place and at the right time. The management operatives and specialist affirm on the use of the 4P’s as a marketing mix analysis tool.

This report similarly examines the marketing environment of Aldi Company in Australia. Additionally, the paper is separated into four sections. The first section considers the company's brief history. The second section examines the company’s both internal and external marketing environment using the PESTEL analysis tool. The third section gives recommendations and analysis of the company’s target market, product description as well as an analysis of the company’s marketing mix and finally the conclusion.



Aldi is one of the two leading discount supermarkets groups in the world with over 10,000 different stores. The company began its operation in the year 1913 under the management of two brothers Theo Albrecht and Karl. Additional, the organization experienced further development in the year 1960, where it was divided into two groups that are; the Aldi Nord in Essen and Aldi Sud in Mulheim (Johnson, pp.78-90). It is important to note that Aldi Sud does its operation in seven different countries these are the Great Britain, Switzerland, Australia, Slovenia, Ireland, Austria, and Hungary. Aldi branch in Australia has managed to secure a spot among the top ten retailer stores in the country through competitive grocery prices, as well as the introduction of market leading actions that have never been experienced before in the Australian market.


Marketing Environment

Marketing environment is the factors both internal and external that surround a business as well as affect the marketing operations and strategies of the business (Gordon, pp.82-99). The internal factors will normally include; customers, employees, shareholders, retailers, as well as distributors. On the other hand, the external factors include technology, politics, legal factors, social factors and economic factors. It is important to note that some of the above factors are totally controllable while others cannot be controlled. Companies ought to be fully aware of their marketing environment in that they can fully understand the negative impacts that may arise due to the factors. This report will conduct the PESTEL (Political, Environmental, Social, Technological, Economic, and Legal) analysis of the Aldi Company purposely, to help understand the marketing environment.


a. Political-Legal

The change in the tax collection policies as the Australian government changes the laws and policies for personal agendas are referred to as an unpredictable factor. Secondly, the food and beverage standard codes generated by the Food Standard Austria New Zealand (FSANZ) influence the food industry in different ways for example; the standards limit the company to new product entrants as well as give close control. The third legal and political factor is the Australia employment act. According to this act, any global company operating in Australia must provide employment to the Australian citizen (Anderson and Rasmussen, pp.259-301). The fourth political factor affecting Aldi's operation is the industrial protectionism as well as support by the Australian Food and Grocery Council (AFGC). This institution understands the importance of growing and maintaining strong food as well as grocery production sector (Williams’s et al., pp.297-316). Lastly, there is growing concern for the packaged foods. With these concerns escalating, the legal claims are also escalating equally. The Australian government is paying a close intervention by procedures and policies to ensure companies provide best and quality products in the future.

b. Economical

It is effective to note that Australia is rated as the 6th rapidly growing new economy. This growth has attracted global investment into the region. According to the Australian Department of foreign trade, the economic growth in Australia is 2.7% and the unemployment rate is at 4.9% similarly it is predicted to rise (Trading economics, 2010). Escalating energy prices will absolutely contain a direct effect on the low price plan equally to the competitiveness of the market. It will have a huge negative effect to Aldi. Finally, the interest rates and the average disposal family income also have a greater effect on the company.

c. Social – Cultural

The social-cultural environment refers to the actual social and physical setting in which individuals live, in which something develops or happens. Similarly, the social-cultural environment includes the culture in which people live in or were educated in as well as the institution and people with whom they connect with. For instance, there is an increased demand for the packaged products currently compared to the recent past. This is due to the changing lifestyle patterns taking place in Australia. Low spending culture is also experienced in the region, option for homemade products and brands. Australians are eco-friendly people and similarly concerned with social ethics, organizations that adhere to this ethics stands to be benefited.

d. Technological

The online shopping platform can be upgraded in the grocery industry in the region. Also, innovative packaging procedure can be embraced in order to uplift the product quality and similarly distinguish the products and brands. Email and internet advertising could also be practiced since it proved to be accurately competitive in different industries.


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Aldi Market Report
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aldi, market, report
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Edison Otieno (Author), 2017, Aldi Market Report, Munich, GRIN Verlag,


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