ASSIGNMENT FRONT SHEET

UNIT: 2 – Marketing Essentials (Core Unit 2) UNIT CODE: R/508/0486 (Core unit)
Learning Hours: 60 Hours. Course: HND Business – Level 4 CREDIT VALUE: 15 CREDITS Term: 1
Self-learning hours: 90 hours. TQT: 150
Unit Leader: MR SAHEED AYINDE Lecturer: Ishmael Bartimeus Internal Verifier: Mrs Sunita Kotta
ASSIGNMENT TITLE:

Learner Name: Veronica Konyicska Term: 1 Cohort: Apr 2017 Intake: Apr 17
Registration Number Campus: REGENT COLLEGE HIGHER EDUCATION
Hand out Date: Week Commencing 04/06/2017 Submission Date: 31/07/2017
Final Submission where turnitin will be blocked: 26/01/2018

In this assessment, you will use the scenarios and also have opportunities to provide evidence against the assessment
criteria.

Learning Outcome Assessment In this assessment you will have the Task Evidence
Criteria opportunity to present evidence that shows Number Page number
you are able to:
P1 Explain the key roles and responsibilities of 1
the marketing function.

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LO 1: Explain the role of marketing and how P2 Explain how roles and responsibilities of 1
it interrelates with other functional units of marketing relate to the wider organisational
an organisation. context.

LO 2: Compare ways in which organisations P3 Compare the ways in which different 2

use elements of the marketing mix (7Ps) to organisations apply the marketing mix to
achieve overall business objectives. the marketing planning process to achieve
business objectives.
LO3: Use contemporary examples to P4 Produce and evaluate a basic marketing 3
demonstrate both the positive and negative plan for an organisation.
influence/impact the macro environment has
on business operations
Please see that you include the Turn-it-in Report attached: Yes If no Reason: % of the turn it in report.
report. This work will not be accepted No
without the Turn it in report.
Learners Declaration: I certify that the work submitted for this unit is my own and the research sources are fully acknowledged.
Learners Signature: Veronica Konyicska Date: 06/08/2017
Plagiarism:
Any act of plagiarism will be seriously dealt with according to the colleges and awarding bodies’ regulations. In this context the definition
and scope of plagiarism are presented below:
Plagiarism is presenting someone’s work as your won. It includes copying information directly from the web or books without referencing
the material; submitting joint coursework as an individual effort; copying another student’s coursework; stealing coursework form another
student and submitting it as your own work. Suspected plagiarism will be investigated and if found to have occurred will be dealt with
according to the college procedure. (For further details please refer to the plagiarism policy and the student code of conduct.)

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 TABLE OF CONTENT

Introduction………………………………………………………………………………………………………………………………….. 4

P1. Explain the key roles and responsibilities of the marketing function……………………………………………………………….5

P2. Explain how roles and responsibilities of marketing relate to the wider organisational context………………………………… 8

P3. Compare the ways in which the chosen organisation applies the marketing mix to the marketing planning process to achieve
business objectives. How does it differ from other organisations or could do better compared to other organisations? ………….. 12

P4. Produce and evaluate a basic marketing plan from the chosen organisation………………………………………………………..17

References …………………………………………………………………………………………………………………………………......... 25

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 INTRODUCTION

Among the fundamental functions of a company we find marketing, a function that studies the relationships of a company with the
environment, whether if they are consumers or competitors.

Regardless of the sector of activity companies, nowadays, compete in a global and unstable environment where it is imperative to
conduct market research in order to commercialize their products and survive in the market.

In general, people have misconceptions about what marketing is about. Sales and advertising is what is generally understood by
marketing, when these two concepts bare only two functions of marketing.

In this sense, as Assistant of Marketing Manager of the company Aldi I will carry out an in-depth research on this subject.

Aldi is a German private retailer that opened its first store in 1913. After 104 years of hard work, Aldi opened more than 10,000
stores in 18 countries with a turnover of more than 50 billion in the last year. It started as a family business having only one store
until 1946 when the children of the family took over the business.

Aldi’s goal is: ‘To provide our customers with the products they buy regularly and ensure that those products are of the highest
possible quality at guaranteed low prices.’ In this instance, Aldi is looking after its customers offering the lowest prices in the
market at an excellent quality. By this way, Aldi is growing in the grocery market thanks to their loyal customers.

In the present assignment, as an Assistant Marketing Manager I will explain the key roles and responsibilities of the marketing
function and how it relates to our company. I will explain and apply the marketing mix and a basic marketing plan in order to
achieve our objectives.

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P1. Explain the key roles and responsibilities of the marketing function.

This business function has its beginnings in the middle of the XX century, exactly in the year 1960 where the American Marketing
Association (AMA) defines the marketing as "the performance of activities that take the goods and services of the manufacturer to
the consumer". This first definition has its emphasis on the exchange of goods between consumers and sellers or manufacturers.
Marketing is considered as a product distribution activity excluding other activities such as market research and segmentation.

AMA reviews its definition every 5 years to update it due to the changing world in which we live.

Therefore, the concept of marketing has evolved and the Board of Directors of AMA approved the following definition in 2013: ”
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that
have value for customers, clients, partners, and society at large”.

At present, the marketing function is not only concerned about the relationship of exchange of goods but also gives customers a
leading role, which wants to offer them a product that satisfies their needs and adds value to their lives. For instance, one of the
main marketing objectives of Aldi is to demonstrate our customers that Aldi brands are equal in quality to well-known other
brands because we want provide customer satisfaction.

Apart from worrying about offering products and services of value to its consumers, the marketing function also involves
satisfying its partners, shareholders and the community in which it carries out its activity. Therefore, marketing aims at mutual
satisfaction of the supplier and the consumers through the proper administration of the marketing mix where they must take into
account the needs of the consumers and the objectives of the company at the same time. The main objective of Aldi is to increase its
market share by offering good quality products to its customers at the lowest price of the grocery market.

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Having a good marketing plan is a must for a business to succeed. In this way, the company will make its products known by
offering the opportunity to be discovered by new customers and thus increase the client's portfolio of the company. Through a
solid reputation and a healthy competition businesses have the best chance to achieve their objectives. In this instance, we will
analyse the 7 functions of the marketing:

Figure 1. Marketing Functions

Distribution

Selling Financing

Seven
Functions
of
Maketing Marhet
Promotion Research

Product and
Service Pricing
Management

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1. Distribution: To be successful it is not enough to have an innovative product, it is necessary to decide on how we are going
to ponder on selling that product. Aldi has to manage its distribution channels, that is to say, we will decide the strategy of
exposition of the products in the store and will improve our web page through which our customers can make online
shopping. Channel Distribution is the starting point of the product commercialisation. It's alike to have the best product on
the market if you do not know how to market it

2. Financing: The marketing plan should be very concise and persuasive as it is very costly. To make money you need money,
and the marketing function needs great financing and the effects will appear long term. Probably half of a company's income
will be reinvested in a good marketing plan, which is why the shareholders disagree with the managers of the companies.
Therefore, our marketing plan needs to be financed so we have to convince our shareholders that we will meet our goal of
increasing our market share and consequently, sales.

3. Market Research: Aldi has to conduct market research and identify our potential customers, know their needs and their
wants. Competition will also have to be analysed.

4. Pricing: Setting the right price of products is a challenge for companies. The mission of Aldi is to offer its customers high
standard quality products at the lowest price. Though the market research, businesses will find the best price for their
products.

5. Product and Service Management: After the market segmentation, identifying the company's target customers and
establishing the correct price of its products, the company must continue to listen to its customers and constantly identify
their needs in order to be able to innovate their products, achieving the loyalty of their customers.

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 6. Promotion: As we live in a changing world, companies must advertise their products to attract new customers and maintain
the existing ones. The advertising media has evolved in the last few years with great importance to the social media as
Facebook or Youtube. Aldi will carry out an online advertising campaign to promote their products.

7. Selling: Lastly, the marketing function involves increasing the sales of the company. Marketing is not equal to sell, since this
fact only happens after identifying our target customers, their needs, wants, products and the most appropriate price.

In conclusion, the business marketing function has evolved and today companies are concerned with offering products that add
value to their consumers, achieve shareholder goals and take care of the community in which they carry out their activity. Thus,
Aldi will develop a marketing plan in order to satisfy all their stakeholders.

P2. Explain how roles and responsibilities of marketing relate to the wider organisational context for Aldi.

Marketing does not consist of selling or advertising, marketing studies and investigates the market to identify our customers' needs
and identify potential customers to meet their needs and also those of other stakeholders such as shareholders, partners or the
government.

After analysing the concept of marketing and its distinct functions we will study the interrelationship of marketing function with
the other functions of the company.

In the figure below we have the different functional areas of Aldi.

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Figure 2: Functional Areas

Aldi Funtional
Areas in Uk

Human Resources Research and

Finance Customer Servuce Distribution Administration Production Marketing
Management Development

Companies divide their work in different departments to increase the efficiency of their performance thanks to the specialization.
Although each department has its own strategy and objectives, these must be coordinated with the company's mission and vision.

When developing the marketing plan on several occasions we will have to collaborate with the other departments of the company.
Due to the nature of each department it is very likely that there will be conflicts of interest between departments because of the
corporate plan.

In this sense, we will examine the relationships between marketing and other functions of the company.

1. Finance:

One of the key departments of the company since it records the cashflow of the company. Also, they know exact information about
the benefit of the company by product or area. They will be in charge of approving the budgets of all departments, where it can
exist a conflict with the marketing department. As Assistant of Marketing Manager of Aldi, I can confirm that we will have to make
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sure that there is enough budget to meet the needs for research, promotion and distribution as these are investment decisions.
Financial instruments or tools are used across the whole marketing plan since we have to plan and control it in order to evaluate
the investment. For example, in the sales evolution forecast a cash flow analysis is needed, this being a financial activity. In the
marketing mix planning, the founding necessary to carry out the different strategies is decided.

Through our Executive Marketing Plan, we have to convince the Financial Department to approve our budget. This should be
concise and its exposure should not last more than 7 minutes, in which we will expose our main objectives and strategies as well as
a projection of the possible results. Control is imperative. In order to carry out our plan, we are totally dependent on the financing
department, since we cannot do anything without the budget.

2. Production:

The production function consists of the manufacture of goods, taking care to produce them on time and to the quality demanded.

As we have already said one of the marketing functions is the market research to know the tastes of consumers, so thanks to this
research the production department will manufacture the products desired by our consumers knowing exact characteristics and
the quantity needed and Its distribution.

3. Research & Development:

Collaboration between these two departments is essential for an innovative company.

The R & D department is responsible for developing the product from the idea generation to the final product that will be
distributed to consumers but if this function does not collaborate with the marketing department to know essential product
characteristics identified through the research of latent needs, the new product will be the engineer's dream but not the desired
product by consumers. Therefore, for the innovation to be a success and the company increase its market share the investigation of
the marketing department is essential in the development of the new product.

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If these two functions do not collaborate, the launch of the new product will not have the desired effect for our shareholders.

4. Human Resources Management:

This function refers to the organization and management of the company's personnel. It is responsible for defining the jobs,
selecting the best staff and rewarding them for their performance in the company.

The Marketing Department should collaborate with the Human Resources Department to ensure that employees have the right
skills for market research for example. They will also help to describe the job positions needed for this function and the training
programs. Through the market research will also evaluate the staff of the company as the shareholders demand to have the best
human capital in the company that adds value to their mission.

The management of our company, Aldi, consists of the collaboration of all departments. The marketing function will collaborate
with the finance, production, R & D and human resources function. The marketing department will tell us the characteristics of our
new products wished by our consumers also the number of units to be produced and the delivery date. Evaluate our staff and
communicate its requirements and staffing needs. All this will be possible thanks to the budget approved by the finance
department.

In conclusion, there is a great dependence on decisions to be considered by companies involving all departments to ensure success.
However, each department has its own objectives and can conflict easily. For example, the production department wants to save
costs and the marketing department tells them to increase the quality of the product. In this case, the different departments have to
analyse the situation and take the best decision for the company.

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P3. Compare the ways in which the chosen organisation applies the marketing mix to the marketing planning process to
achieve business objectives. How does it differ from other organisations or could do better compared to other organisations.

We have already defined the marketing function in the company and we have analysed its importance. All departments of the
company are connected to this function, so its role in the company is indispensable. Then, we will analyse the 7Ps of marketing
applied in our company, Aldi, and also, compare with its main competitor Lidl, formally called Schwarz Unternehmens Treuhand
KG.

The success of the marketing plan depends on how it addresses a number of key factors. Traditionally they were known as the
Marketing Mix 4Ps, but now this business function has evolved and we talk about 7Ps of marketing, which are the following:

1. Product:

By product is meant the value added by the product to the life of the consumer, a subjective characteristic depending on the type of
customer. Therefore, companies must investigate the needs existing in the market and find solutions that meet those needs. It is
important to decide the quality level of product for your target market segment.

In this instance, Aldi's product strategy is to offer quality products at the lowest price on the market. Aldi offers products similar to
those found in other supermarkets but at a lower price. Apart from these products found in the store on a regular basis, Aldi offers
weekly a limited number of various products such as kitchen and household equipment. These products are different every week
and are advertised a week before in the stores using posters. Its main competitor Lidl follows the same strategy of offering quality
products at low prices. However, the difference between these two supermarkets is that Aldi's policy is to offer limited quantities
and selection.

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This characteristic makes them different since the customer can appreciate these products with more exclusivity. However, Lidl
offers a wider range of organic products.

2. Price:

The most complicated decision to make is the price of the product. The price must take into account several factors such as the cost
of the product, the prices of the competitors and the perception of consumers. The most appropriate price will be the price that our
customers are willing to pay for our products, but it must also make profit for the company.

Aldi's pricing policy is to offer products of the best quality possible at the lowest price possible through 3 tactics:

 Market penetration: Applied policy in the case of new products to gain market share quickly by charging a very low price
for the respective products.
 Competitive pricing: Offer lower price than its direct competitor. However, most products have the same prices as Lidl. For
example, organic bananas are found at £ 1.15 at both supermarkets as well as the sunflower oil at £ 1.09.
 Strategic pricing: Depending on the brand of the product, the price will be established as higher as possible, since Aldi also
offers other brands than its own.

In order to offer products at such a low price, Aldi negotiates with its suppliers to buy large volumes of products benefiting from
economies of scale.

3. Place:

Companies must offer their products in the right place, at the right time and in the right quantity at the lowest costs. Also, the
inventory has to be considered as the customer could find any time all the products offered by the company.

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To be able to offer such low prices, Aldi has very simple store designs limiting the waste. When looking for a new location, Aldi
takes into consideration the number of people who visit the area needing at least 30,000 people. Its stores are located into the main
streets to have good visibility, with access to public transport and with the possibility of offering free parking.

Lidl, on the other hand, focuses on selling the maximum number of products ensuring that shelves are always full so they have to
make sure that they have a warehouse near each store.

4. Promotion:

The promotion consists of the way in which the company communicates the products it offers to its potential customers. Through
this communication the company should highlight the benefits of the product and the added value of this. Moreover, it is necessary
to emphasize that through this promotion the employees of the company also know more details of the products and they will be
able to share this knowledge with the consumers. This strategy will help to improve the image of the company and increase the
demand.

In the case of Aldi, we can highlight the campaign "Like Brands" that lasts 20 seconds and announces a certain product on the
television, conveying the message that Aldi products are cheap but of good quality just like any other brand. Also prints 1 million
leaflets each week which are distributed in stores. We cannot leave aside their presence in the social media and the use of electronic
mail to contact their customers.

Its competitor, Lidl makes little effort for this strategy as it considers that the fact of offering a low price is enough to win its
customers.

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 5. People:

This strategy refers to the staff of the company. Every employee who has direct contact with the customer has a direct effect on the
company, so it is important that employees are motivated, well trained and with a good attitude towards customers. It is essential
for the company to ensure that its employees are suitable for that type of work.

Both, Aldi and Lidl stores are simply designed to save staff costs in each section, so some customers will probably feel disregarded
because the employees will be highly busy performing their tasks to fulfil their responsibilities. All employees are well paid and
trained to ensure they are highly efficient in their work.

6. Process:

It refers to the process through which a service is offered.

In the case of Aldi, refers to the behaviour of the employees as it is essential to increase consumer satisfaction. That is, customers
are served properly, waiting lines should not be long and customers should be well informed always. The experience of customers
in the store is very important as they will recommend our products or on the other hand, they can criticize us due to an unpleasant
experience in the store.

Both in Lidl and Aldi, consumers are not involved in any process of the company so their power is limited over the operations of
these two supermarkets.

7. Physical Evidence:

A characteristic more attributed to the services, since these are intangible factors that the client perceives and they cannot
experience before the purchase.

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In this sense, the two supermarkets keep their stores clean and follow the same design in all stores for customers to find their
products quickly. Lidl is recognized by its brand colour, blue and yellow and Aldi, blue and orange.

Both supermarkets follow the same strategy of offering quality products at the lowest possible price. However, there is a small
difference between them two, Aldi follows the concept limited assortment, characteristic that makes them have two points more
than Lidl in terms of market share.

Figure 3: Grocery Market Share in Great Britain

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Source: https://www.kantarworldpanel.com

To continue growing in the industry, Aldi should increase the number of stores and incorporate new products with higher quality
to gain market segments with more purchasing power.

P4. Produce and evaluate a basic marketing plan for the chosen organisation.

The marketing plan of Aldi 2017 of United Kingdom will be organized as follows:

First, a SWOT analysis will be conducted to know the real situation of the company. Once the situation of the company has been
analysed, we will establish 4 ambitious goals to meet in the following year. The strategies to comply with them and the control
policy to follow will be explained next.

1. SWOT ANALYSIS:

STRENGTHS:

 Very affordable prices

 Operating low costs
 Quick shopping experience

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WEAKNESSES:

 Small compared to other brands

 Few stores compared to other brands
 Minimal advertising
 Limited goods
 Quality perception

OPPORTUNITIES:

 Offer high quality products

 Offer fresh baked products: bread, croissants, doughnuts, etc.
 Open more stores
 Use of technology

THREATS:

 Customers looking for complete shopping experience have to go to another supermarket.

 Competition from larger stores.
 Online shopping

Target customers: Households; People looking out to purchase grocery at competitive prices.

Positioning: Strong presence in Germany, providing great prices for their products but they little variety.

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 2. OBJECTIVES:

Taking into account the situation of the company analyzed in the P3 of this assignment and previously through the SWOT analysis,
the objectives for the year 2017 are:

 Increase the market share by 3 points, ie from 7% to 10%.

 Increase the number of stores by 10%. Now Aldi has 700 stores in UK, but the plan is to have 770 by the end of 2018.
 Improve customer satisfaction.
 Add one product line in our offer: open our own fresh baked products in our stores.

3. STRATEGIES:

To achieve these objectives ALDI will carry out the following actions:

 Open 70 stores across UK, 35 this year and 35 next year:

Aldi will open new stores in order to increase its market share. Of these 70 stores, 20 will be open in London, 5 in Liverpool, 5 in
Manchester, 5 in Leeds, 5 in Nottingham, 10 in Cardiff, 5 in Newcastle upon Tyne, 10 in Edinburgh and 5 in Glasgow.
They will be opened successively throughout the year, and will have the same size and format. Of course, they will have
incorporated the new strategies, that is, the small bakery and the self-check out.

Next, we can see the time frame of the opening the new stores strategy.

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Figure 4: New Opening Stores

London Liverpool Manchester Leeds Nottingham Cardiff Newcastle Edinburg Glasgow

March 2017 February October June 2017 May 2017 November September December December
2018 2018
2018 2017 2018 2018

 Advertising:

For Aldi is very important to increase its advertising. In this instance, Aldi will focus on social networks and the Internet but will
also be present on television and other events.

 Social Networks, Internet and Television:

Aldi has to ensure that their customers will know all the information about their offers and products or any kind of news at the
moment through their Facebook , our phone or tablet App, and Twitter account. Also, thanks to this channel of communication we
will receive feedback directly from our customers knowing instantly that they like and that we have to improve.

Moreover, Aldi will realise a TV campaign of 30 seconds duration in with Gordon Ramsay will prepare a delicious recipe
explaining our best products. This video will be seen on television on BBC 1, BBC 2 and BBC 4 and on its website.

 Events:

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In order to make our company known in key the sponsorship of events, in this sense Aldi will be present in the following events:

o Experience the Exeter Festival of South West Food and Drink.

o Oktoberfest
o Much Ado About Nothing

 Discount and Offers Policy:

o Get more from your shopping with CLUBCARD:

Clubcard is our new way of thanking you for shopping with us. Our customers have to fill in a simple registration form to get our
Clubcard and start collecting points every time is buying something from us. One-pound turn into 1 point. Every 150 points turns
into £1.5 in vouchers- for saving on shopping with us. By this way, our department will know more information about our
customers like for example: how far they live from our shop, what they usually buy to make sure our that we will have them
always in stock and how often they come to do shopping.

o End of the month discount:

On the last weekend of each month, Aldi will offer a 25% discount on selected items.

o Buy one, get one free:

Monday to Friday, buy one- get one free policy on selected items. Every week different items.

 Add self-check out machines in our stores:

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In order to improve the satisfaction of our customers by reducing the waiting time to pay for their shopping, Aldi will incorporate
6 self-check out machines in all out big stores. Using these machines, our customers can go directly to pay and avoid the long
queue.

 Add a fresh baked corner in our stores:

Our customers can enjoy our in-stored fresh baked products. We will offer a wide selection of bread, biscuits and pastries. The
range will be prepared daily using specialist ovens and.

We will need to employ 2 more professional staff per shift, to attend this area.

4. BUDGET:

70 new stores: £1,200,000.00

Staff: £200,000.00

Self-check out machines: £120,000.00

Discount and Offer policy: £25,000.00

Events: £20,000.00

Advertising: £20,000.00

In-stores bakeries: £450,000.00

Total: £2,035,000.00

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The Finance Department have to approve £2,035,000.00 for to achieve our objectives. It is important to mention that these strategies
will bring revenue for our company for long time, since it is about 35 new stores this year, self-check out machines and in-store
bakery.

5. CONTROL:

The controls will be performed monthly.

What are we going to control?

1. Level of quality and customer service perceived by our customers.

2. Measurement of results in social networks.

3. Revision of the number of clients.

4. Ensure that new stores are opened on time.

5. Ensure that bakeries and self-check out services will be incorporated on the indicated dates.

How are we going to do it?

1. Revision of number of customers: customers year 2017 - customers year 2016 / customers year 2016
2. Measurement of the number of followers in Twitter, Facebook friends, visits to our website and downloads of our
application in the mobile.

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 3. Through a survey on Facebook, we will know if the customers are satisfied with the new changes and by this way we can
receive new ideas from them.
4. Every month, we will check the progress done to open the new stores. If we have any delay, we will employ more staff to
make sure our stores will be opened in time.

To summarize, Aldi will carry out an aggressive marketing plan for the year 2017 as the proposed objectives are very ambitious.
Increase market share by 3 points, open 35 new stores, improve customer satisfaction and offer fresh baked products will place our
company in a better position in the market.

Strategies to achieve these goals must be successful. Currently, the presence of the companies in the social networks and in the
Internet, is very important. In this instance, Aldi will realize an exceptional online campaign.

In conclusion, the Marketing Function performs the necessary actions to satisfy the customer needs and wants.
Carrying out market research, this function will know extra information about its customers and in this way, can improve the
company's activity either by improving customer service or by changing its products or services offered.

In this sense, Aldi thanks to the incorporation of Clubcard you will be able to do an excellent job as, they will know perfectly their
customers

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American Marketing Association. (2008). marketing. Available: www.ama.org. Last accessed 17TH JUNE 2017.

CIM. (2015). The 7 P's of Marketing. Available: https://www.cim.co.uk/media/4772/7ps.pdf. Last accessed 3 June 2017.

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Edexcel, Pearson, 2007. Business Essentials. 3rd ed. London: BPP Learning Media LTD

Jim Blythe (2005). Essentials of Marketing. 3rd ed. Essex: Pearson Education Limited. 1-375.

John Burnett (2008). Core Concepts of Marketing. New York: A Global Text. 1-298.

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http://www.thensmc.com/sites/default/files/CIM%207Ps%20Resource.PDF. Last accessed 30 June 2017

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Jay Baer (2013). Youtility: Why Smart Marketing Is about Help Not Hype. New York: Penguin Group. 47-156.

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