Essay on Aldi in Australia - 1

2786 Words Oct 29th, 2012 12 Pages
Introduction
Aldi is a German discount retailer which has entered the grocery industry in Australia since 2001. It offers customers very low prices on a limited range of groceries to attract low and working classes. Although “the Australian retail grocery industry is one of the most concentrated in the world, with the two major chain stores, Coles and Woolworths”( Walker, 2004, p. 317), Aldi becomes the another force by its lower prices products and other advantages. This critique will first analyze micro and macro marketing environment. Then it will illustrate overview of Aldi’s market share in Australia and redesign its marketing mix under 7Ps. Lastly, several recommendations will be stated.

1. Marketing Environment Analysis- Micro
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Therefore, there are three to five staffs in an Aldi store while there should be twice many in Coles and Woolworth. Smaller number of staffs makes it possible to reduce Aldi’s labor cost. As a result, most of its employees are on permanent instead of casual or part-timed, which gain a good social reputation in public.

2. Marketing Environment Analysis- Macro Trends
A company and other actors do business in a large macroenvironment which may regulate the company’s development. Marketing macroenvironment consists of demographic, economic, natural, technological, political and cultural environment (Kolter and Armstrong, 2005, p. 126-147).
2.1 Trend One: Demographic Environment
Demographic environment is a very significant factor for marketing researchers to analyze a company’s macroenvironment, because people make up markets and demographic environment is a study to involve people (Kolter and Keller, 2011, p. 76). Size of population, gender, location, occupation and other factors about demography may influence a company’s sale in a specific place.

As Australia is a country of immigrants, there are two components about the growth of Australia’s population: natural increase and net overseas migration. Big cities, like Sydney and Melbourne, have specific locations for immigrants. Different immigrants have different living habits and consuming

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