Write a Marketing STDP report on ALDI

Section 1: Background

Please provide a brief fully referenced background to this report. This needs to include a description of the problem that lead to the evolution of the company and why this is appropriate for expansion in line with their goals, as well as a description of the company's market oering that will be the focus of your assessments. Please see the Assessment 3 Rubric. It is vital that you make these points succinctly. Without being prescriptive, the sort of information you could consider including is:

• Clearly identify what industry your client is in. Many companies fall into more than one industry. For example, a beach caf could be part of the tourism industry and/or the hospitality industry, both are appropriate. You need to build an argument with justification what you see is best fit.
• Provide an overview of that industry stating key industry data
• What is the market offering - from both the internal and external perspectives
• How these relate to the stated objectives of the brief your client has given you (see Assessment Guidelines)

You may not be able to find exact information when it comes to the market, competitors, market share, etc. so you will need to base any assumptions on a reasoned argument and supported by relevant sources/references. It does need to be logical and flow consistently through each section of the report. See the Q&A below regarding research.

Section 2: Market Segmentation

What do I include in this section? Is it just the table?

No, this section needs to start with a fully justied (referenced) overview of the segmentation bases (Geographic, Demographic, Psychographic and Behavioural) the company should include and why they are relevant to the company, its market offering, and the market generally. You also need to explain the segmentation table, why the variables used within the bases are appropriate, how the information presented in the table was sourced and why it is relevant. Remember, you should never just place a table or a figure into your writing - you need to refer to its existence and relevance to your argument and identify its significance.

Do I need to include all segmentation categories?

Yes, you are required to address all 4 bases of segmentation (Geographic, Demographic, Psychographic and Behavioural).

How many segmentation variables should I include?

You need to include 2 variables within each segmentation base to ensure that your segments are clear, unique and accessible. This way, the more unique your segment is (the better you can tailor your marketing mix to suit their needs), but the smaller the group is. If you use too few variables your group is too diverse, and you have trouble meeting their needs or reaching them properly.

How many segments do I need to identify?

You need to create three segments for your assessment and compile these in a segmentation table. Once you have this table of your segments, you pick one of those unique groups of consumers to be your target market (Section 3). Please ensure your segments are consumer segments only (not business segments).

Do my segments need to be completely dierent?

No, there might be some overlap between your segments on individual elements (i.e. age or income). However, it is the combination of factors that will make each segment unique.

What are Socioeconomic Quintiles?

These classications relate to social class and are based on socio-economic variables such as educational attainment, income and occupation. Marketers around the world tend to use a conventional classication which divides any given population into ve socio-economic quintiles. In Australia, the groups AB, C, D, E and FG are used, where AB is the top socio-economic quintile. For example, the AB socio-economic group account for a very small proportion of the population but control the majority of discretionary spending. As an alternative, throughout Asia social class classications are referred to using Roman Numerals I, II, III, IV, and V, where I is the top socio-economic quintile.

Research companies like Roy Morgan usually have a good explanation of the quintiles and how they are calculated if you would like to read further about them.

Other examples of useful resources that also seem to provide further insights are:

• Australian Bureau of Statistics 6523.0 Household income and wealth, Australia 2017-2018 (full access is available to all students through the Library electronic databases)
• Roy Morgan XYZ Customer Profile: October 2013-Septemeber 2014 (this is sample report, but it allows you to see how Roy Morgan uses the quintiles to measure socioeconomic statuses of the target profile group on p. 23)
• Neilsen ABCDE Socio-economic classification (this is a sample report that shows how Nielsen use the ABDCE quintiles in a foreign marketplace)

Section 3: Targeting and Consumer Prole How many segments do I need to target?

In this assessment you need to pick just one (1) segment to target. This segment will be the focus of Assessment 4, where you will develop your marketing mix strategies designed to meet your marketing objectives in relation this target market.

What does this section require?

This section has two key parts. First you need to identify and justify why the segment that you have chosen from those outlined in section two is the most suitable for the company.

Secondly, you need to provide a brief description of the type of people in that segment (beyond the basic outline provided in the segmentation table). This is called a consumer prole.

Example

Of the segments identied in Table 1, New York Rangers should pursue the Hockey-loving Local Family segment (this sentence clearly identies which segment New York Rangers should target; the next step is to justify why they should target this segment. Use references!). The current environment is facing political and economic uncertainty (reference). As such, the New York Rangers should target auent consumers as they are able to continue enjoying luxuries in periods of economic downturn (reference). These consumers reect a family of 1-2 adults and 1-2 children.

The next paragraph should paint a picture of who these consumers really are:

The consumers in the Hockey-loving Local Family segment are in their middle age and are married with children. These children will be old enough to attend the games with their parents. The Hockey-loving Local Family segment are passionate and loyal fans of the New York Rangers. They regularly attend games, and because they live in New York City, will be more likely to attend mid-week games and events when compared to travelling fans. They attend New York Rangers games because...

Section 4: Dierentiation and Positioning What is the goal of this section?

The dierentiation and positioning discussion is your rst step towards developing a tailored solution for the unique group of consumers you have chosen to target. Dierentiation is fundamentally about deciding how you can set your brand/product apart from the competition in order to deliver superior customer value. Positioning is about occupying a clear spot in the mind of the consumers, so that they think about your brand/product more favourably than the competitors. The prescribed textbook outlines how to write a positioning statement and an example of a positioning map is also provided.

Positioning statement. You must develop a positioning statement. Please refer to the prescribed textbook and see the example below. Please note, the points of dierentiation you identify in your dierentiation discussion must then be used in your positioning statement and on the axes of your positioning map.

NOTE: Do not get confused with dierentiated marketing, this is a dierent concept!

Example

Having identied a target market, the New York Rangers should seek to dierentiate themselves from other leisure activities, events, and teams in the NHL, while also establishing a clear position in the minds of the target market.

{Outline the three steps for a brand to dierentiate and position themselves and why these are the right dierences}. The competitive advantages for the New York Rangers would be the location, the history of the club, the social importance of watching sport, the pace of ice hockey (references for each of these ideas). However, to create superior customer value the New York Rangers should focus on two of these advantages: the fast, dynamic nature of ice hockey and the social nature of watching sport.

The New York Rangers will adopt the following positioning statement:

To hockey loving local families, the New York Rangers family packages will provide fast paced, exciting, social outing suitable for the whole family.

Positioning Map. You must develop a positioning map (see the prescribed text for an example) showing how you believe the company is positioned compared to their competitors on two important buying dimensions. The buying dimensions must be the same as the points of dierence (competitive advantages) you identied in the positioning statement. You must then provide a short explanation demonstrating why you have positioned the company in this way compared to their competition. Developing a positioning map for the New York Rangers, the two advantages Fast/Dynamic and Social, would be shown on each of the axes.

Section 5 Conclusion

This is the nal section of the report and needs to wrap everything up, discuss the implications for the company and provide some guidance for the next steps you are going to take for your client. You will need to be succinct in this section.