This assignment investigates the different forms of the promotional mix that has been used by ALDI, a major grocery chain in the UK that is seeking to change its image.

Essay by darrylhpUniversity, Bachelor'sC+, March 2006

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INTRODUCTION

ALDI, in an attempt to gain an increase in market share by targeting a different clientele has embarked on a £500m campaign in the UK, building new stores and refurbishing existing ones. The purpose is to enhance their image, improve their brand reputation and essentially attract a different type of customer.

For communication to be effective however there are fundamental elements as described in (fig 1.) that need to be adhered to, which focuses on the sender and receiver, and how messages are dealt with.

Fig 1 Model of the communication process

Source: Blythe 2003, p.2

ALDI'S INTENTIONS

The intention of the company in general is to:

- Double their market share

- Update their design

- Close outlets that do not suit their purpose

- Increase their range of products

- Change the boxy interior

- Save time for the customer

In order to achieve these objectives, the company has adopted an image overhaul strategy which is broken into three parts:

- Above the line TV campaign

- Improving quality and range

- Improving store design layout and decor

The overall strategy has focused on different aspects of marketing communications, consisting of an above the line TV campaign supported by an outdoor poster activity and newspaper advertising.

It also includes public relations, through invitations to The Grocer for the opening of their new store, together with sales promotion, for which they are already noted.

Primarily the company is adopting an AIDA (Awareness, Interest, Desire and Action) model of response, which focuses on seeking a cognitive, affective or behavioural response, as described in detail in (fig 2).

AIDA MODEL IN ACTION

Fig 2. Source: Wright 1999, p. 279

Above the Line advertising

Advertising creates awareness, informs, educates, reinforces and persuades customers about the benefits of the company.