Unit 2 Marketing Processes and Planning Case Study

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Part 1

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Definition of marketing in the 21st century

In the 21st century, the face of marketing has developed into a dynamic and client-driven discipline, moving ahead of the customary item-driven approaches. It envelops a comprehensive arrangement of exercises pointed toward making, imparting, conveying, and trading value with clients. Marketing in the contemporary scene goes past simple advancement and publicizing, centring on understanding as well as fulfilling client needs and demands in creative ways. In the present interconnected world, computerized advances assume a vital part, empowering customized along with information driven promoting procedures. Online entertainment, examination, and man-made reasoning add to a more designated and effective methodology(Bruijl, 2017). Additionally, manageability and moral contemplations are essential parts, mirroring the uplifted mindfulness and upsides of present-day customers. The 21st-century marketing worldview stresses assembling long-haul associations with clients, recognizing their power in moulding brand discernments through web-based entertainment and online audits. It likewise perceives the meaning of experiential advertising, where client encounters and feelings are key variables impacting brand devotion. Fundamentally, marketing in the 21st century is tied in with adjusting to a quickly evolving scene, utilizing innovation, and focusing on client commitment and fulfilment for supported achievement(Belz, 2006).

The role of marketing function

The various functions of marketing inside Aldi, the famous retail store chain, play a multi-layered and tactical part in driving the association's prosperity. Fundamentally, the marketing operation is liable for understanding client needs, creating successful procedures to address those demands, and making an explicit brand picture that reverberates with the interest group. Aldi's marketing endeavours are especially essential for their attention to proficiency, incentive, and consumer loyalty. A critical part of Aldi's promoting capability is statistical surveying and buyer experiences. Aldi puts essentially in grasping buyer conduct, inclinations, and market patterns(Garbarski, 2014). For instance, Aldi's obligation to offer great private-mark items at some discounted costs is a consequence of a profound comprehension of customer interest in esteem without compromising quality. Through information examination and client input, Aldi tailors its item collection to meet the particular necessities of its client base. Aldi's advertising capability additionally underscores viable correspondence procedures. The organization is known for its moderate and clear promoting approach, mirroring its obligation to straightforwardness and worth (Moorman and Rust, 2019). For example, Aldi's promoting efforts frequently feature cost investment funds and item quality, supporting the brand's picture as a financially savvy yet great shopping objective. The "Aldi Finds" special methodology, highlighting restricted time and unique items, is an illustration of how Aldi creates fervour and urgency among clients. When it comes regarding pricing tactics, Aldi's marketing department plays a key role in carrying out the business's "Everyday Low Prices" tenet. The three pillars of Aldi's pricing approach are cost administration, uniformity, and clarity. The marketing team makes sure that the value proposition of the supermarket's products is reinforced by successfully conveying its pricing philosophy to consumers via a variety of media. In addition, the marketing department is essential to preserving and improving Aldi's reputation. Aldi is renowned for its dedication to community involvement, ecological consciousness, and longevity. Advertising campaigns draw attention to Aldi's initiatives to lessen its impact on the natural world, including its use of environmentally responsible procurement methods and a reduction in waste generated by packaging. This is in line with the inclination of contemporary customers toward , hence augmenting Aldi's prestige and patronage. Besides, the marketing capability teams up intimately with other hierarchical capabilities, for example, tasks and store networks, to guarantee the consistent execution of advertising techniques. For instance, Aldi's promoting group works pair with the activities division to enhance store designs, guaranteeing a proficient and lovely shopping experience for clients (Ko, Hwang and Kim, 2013).

How the marketing function works and interacts with other departments

Aldi's marketing division is deeply ingrained in the company, encouraging cooperation and working in tandem alongside other parts of the business to accomplish overarching goals. In order to address client demands as well as promote organizational performance, an easy and cohesive strategy is essential, which requires multidisciplinary communication. The Operations department of Aldi has become one of the main divisions that works extensively alongside the advertising division. In light of Aldi's dedication to effectiveness and economics, operations administration is critical(Verhoef and Leeflang, 2009). In order to maximize inventory control, retail layouts, along with supply chain transportation, the department of marketing works in tandem with the operation. Aldi places a strong focus on offering a small selection of excellent brand-name goods at competitive rates. To guarantee that products are accessible when and where buyers require them, both operations and marketing must work closely together. This connection is in line with the supply chain oversight philosophy, which emphasizes the necessity of cross-functional cooperation in order to provide value to consumers. Another basic cooperation happens with the Purchasing department. Aldi's emphasis on private-name items and direct obtaining from providers results from cooperative endeavours among promoting and buying (Ngadiman and Belgiawan, 2023). The promoting capability conveys client inclinations and market patterns to the buying group, impacting item collection choices. This association lines up with the standards of classification management, where marketing experiences guide item determination and marketing procedures to streamline deals and productivity. The HR division is likewise firmly connected with the advertising capability at Aldi. Marketing efforts frequently mirror Aldi's corporate culture and values, like effortlessness, straightforwardness, and obligation to worker prosperity

(Webster,2022). HR teams up with promoting to guarantee that inside and outer information lines up with Aldi's image picture, cultivating a predictable hierarchical personality. This joint effort upholds the hierarchical conduct hypothesis, accentuating the impact of shared values on representative commitment and authoritative execution. Aldi's IT and Innovation offices are urgently supporting the marketing capability through information examination, client relationships management CRM), and computerized advances. The advertising group uses innovation for statistical surveying, customized marketing efforts, and online client commitment. This joint effort mirrors the idea of incorporated promoting correspondence, where different correspondence channels and innovations are flawlessly used to convey a steady message to clients (Wichmann et al., 2022).

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The extended marketing mixes

The extended marketing mix, otherwise called the 7Ps, develops the conventional 4Ps (Product, Price, Place, and Promotion) and incorporates three extra components — People, Process, and Physical Evidence. This extended structure is especially significant in helping enterprises, like the retail area, where client experience and administration quality assume urgent parts. We should dig into how Aldi, the chosen store, consolidates the drawn-out advertising mix:

Product: Aldi centres around a novel product procedure, offering a restricted variety of private-name items. These are cautiously organized to guarantee quality while keeping up with moderation. The accentuation is on fundamental things, limiting the messiness frequently connected with broad product portfolios in customary grocery stores. For instance, Aldi's "Special Buys" segment presents new and special items, making a feeling of energy among clients.

Price: Aldi's pricing procedure is a foundation of its prosperity, lining up with the "Everyday Low Prices" reasoning. By disposing of insignificant expenses and underlining private-name brands, Aldi conveys cost reserve funds to clients. The evaluating structure is basic, straightforward, and predictable, adding to an impression of significant worth. For example, Aldi's forceful estimating of staple things like milk and bread improves its intensity.

Place: Aldi's worldwide development procedure is set apart by essential area decisions for its stores. The store chain centres around easy-to-access and open areas, frequently in rural regions. The store formats are intended for productivity, offering a direct shopping experience. Aldi's obligation to extend lines up with the Spot component, guaranteeing its presence in key business sectors to arrive at a more extensive client base.

Promotion: Aldi's promotional strategies are portrayed with straightforwardness and effectiveness. Promoting is moderate yet effective, underlining cost reserve funds and item quality. Aldi's flyers and week-by-week promotions impart exceptional arrangements and restricted time offers, making a need to get going among clients. The "Aldi Finds" campaigns, exhibiting extraordinary items, are instances of special endeavours that drive client commitment (Febriansyah, 2019).

People: The people component in Aldi's marketing mix fixates on client support and worker commitment. In spite of the lean working model, Aldi puts resources into preparing representatives to guarantee productive and cordial assistance. Staff productivity at the checkout and help with finding things add to a positive shopping experience. People factor lines up with the administration's advertising rule that accentuates the basic job of the workforce in conveying quality help (Ghosh, Tripathi and Kumar, 2010).

Process: Aldi's functional processes is intended for speed, productivity, and cost-viability. The checkout cycle is smoothed out, and the accentuation on self-administration adds to faster exchanges. The stock administration process guarantees ideal stock levels, limiting wastage. The effectiveness of processes lines up with the administration's marketing idea of conveying administrations in a precise and client well-disposed way.

Physical Evidence: Aldi's dedication to pricing and efficiency is evident in the way its stores are organized and designed. The company's image is strengthened by the simple display and minimalistic elegance. The tangible proof emphasizes informational that is clear and straightforward in packaging for products as well. Aldi's value offer is palpable and embodied throughout the entire retail experience (Rooks and Shanklin,2018).

How the marketing mix adopted

Aldi's promoting mix is a painstakingly created system that has demonstrated profound success in situating the general store chain as a forerunner in the business. The item component is described by Aldi's obligation to private-mark items with a restricted combination. This essential choice not only guarantees command over the store network, adding to item quality, yet in addition recognizes Aldi from contenders. The presentation of remarkable and occasional things in the "Unique Purchases" segment adds a layer of fervour to the item offering, upgrading client commitment. Aldi's evaluating technique is a champion element of its promoting mix. The "Everyday Low Prices" reasoning reverberates firmly with cost-cognizant buyers, making a straightforward and dependable evaluating model. The forceful valuing of fundamental things, combined with a direct and predictable methodology, positions Aldi as a fevered objective for frugal customers. This essential accentuation on moderateness contributes altogether to major areas of strength for Aldi's advantage in the retail scene. Aldi's marketing mix's location component is characterized by thoughtful store location in convenient places, usually in the suburbs (Garbarski, 2014). A pleasant buying experience is enhanced by store design that prioritize speed. Aldi's plan for expanding globally guarantees a robust presence in strategic areas, enabling the grocery chain to access a wide range of consumers and solidify its standing as a prominent participant in the sector. The simplicity and consequences of Aldi's advertising strategy define it. Despite having a smaller advertising budget than some of its rivals, Aldi uses the internet, weekly advertisements, and pamphlets to successfully convey its value offer. Customers are more engaged and loyal when there is an atmosphere of eagerness created by the "Aldi Finds" promotions and time-limited deals(Wichmann et al., 2022). Aldi's accentuation on the people component is clear in its obligation to worker preparation and effectiveness. Notwithstanding keeping a lean labour force, Aldi puts resources into guaranteeing that workers are learned and equipped to offer well-disposed support. The process component of Aldi's marketing mix is intended for speed, productivity, and cost viability. The smoothed-out checkout process, accentuation on self-administration, and streamlined stock administration add to a consistent client experience.

Recommendations

RecommendationsDescription
Digital Marketing Integration Aldi ought to improve its digital marketing efforts to reach a broader audience and take advantage of the growing trend of online shopping. Implementing targeted online advertising, social media campaigns, and personalized promotions can enhance brand visibility and customer engagement in the digital space.
Customer Relationship Management (CRM) Strengthening CRM practices can help Aldi understand individual customer preferences, leading to more personalized product offerings and promotions. Implementing loyalty programs and using customer data analytics will improve the overall customer experience and foster brand loyalty.
Sustainability Communication Aldi should ramp up its communication on sustainability initiatives. Highlighting eco-friendly practices in marketing campaigns will resonate with environmentally conscious consumers, improving brand reputation and attracting a segment that values sustainable practices.
Innovation in Product Offerings Introducing innovative and exclusive products more frequently, like the "Aldi Finds" concept, can generate excitement and drive customer interest. Regularly updating the product mix will maintain a sense of novelty, encouraging repeat visits and increasing customer engagement (Wichmann et al., 2022).

Part 2

Strategic marketing plan links with the overall organisational mission, corporate strategy and objectives

The tactical marketing plan for Aldi's new 'Luxurious' range of own-brand food items comes in accordance intimately with the association's overall mission, corporate system, and goals. Aldi's main goal fixates on giving excellent items at reasonable costs, intending to improve the shopping experience for its clients. The presentation of the 'Luxurious' range mirrors Aldi's obligation to advance and meet developing shopper inclinations while remaining consistent with its incentive. From a corporate methodology point of view, the introduction of the ''Luxurious' range adds to Aldi's objective of expanding its item portfolio and taking care of a more extensive scope of purchaser tastes and inclinations(Yaneva, 2020). By offering premium-quality items at serious costs, Aldi fortifies its situation on the lookout and separates itself from contenders. The essential promoting plan for the ''Luxurious' range frames explicit targets lined up with Aldi's more extensive hierarchical objectives, for example, expanding piece of the pie, improving brand insight, and driving deals development. Through designated marketing drives, including item situating, marking, and advancement, the arrangement intends to lay out the 'Lavish' range as a favoured decision among purchasers looking for unrivalled quality and worth(Elias?Varotsis, 2000).

SMART marketing objectives

ObjectiveDescription
Increase market share Increase Aldi's market share in the premium food segment by 10% within the next fiscal year.
Enhance brand perception Improve consumer perception of Aldi's brand by positioning the 'Luxurious' range as synonymous with quality, taste, and value.
Drive sales growth Achieve a 15% increase in sales revenue from the 'Luxurious' range within the first six months of its launch.
Expand customer base Attract new customers to Aldi by targeting affluent consumers and those seeking premium food options, increasing customer acquisition by 20%.
Build brand loyalty Increase repeat purchases and brand loyalty by implementing a loyalty program and achieving a 25% increase in customer retention for the 'Luxurious' range.

Marketing research to support the new product line launch

To help the introduction of Aldi's new 'Luxurious' range of own-brand food products broad marketing research is basic to give exact bits of knowledge into shopper inclinations and market elements inside the top-notch food section. Directing customer studies and centre gatherings permits Aldi to gather important information on buying ways of behaving, taste inclinations, and impressions of premium food items. For example, starting reviews might uncover that 85% of respondents express an eagerness to pay a premium for great food things flaunting unrivalled taste and fixings. Moreover, an exhaustive market examination empowers Aldi to perceive winning patterns, development projections, and cutthroat benchmarks inside the superior food scene(Vidor et al., 2023). According to this study, the desire for exquisite and handcrafted foods is expected to drive an 8% per year increase in the high-end food sector throughout the course of the next five years. Furthermore, a comprehensive analysis of rival strategies such as cost schemes, supply chains, and marketing approaches will provide Aldi with significant insights concerning market standard operating procedures as well as chances for competitive advantage. Aldi may create a focused marketing plan that caters to the sophisticated desires and tastes of the demographic it is targeting by utilizing research based on data. This will guarantee the prosperous introduction and further expansion of its 'Luxurious' merchandise line (Salmen, 2021).

Situational analysis

Marketing Audit

SWOT Analysis

Strengths

Laid-out Brand Notoriety:  Aldi partakes in major areas of strength for offering great items at reasonable costs.

Efficient Operations:  Aldi's lean working model empowers cost reserve funds and cutthroat valuing.

Broad Store Organization:  Aldi's far-reaching presence gives openness and accommodation to clients.

Weaknesses

Restricted Item Assortment:  Aldi's attention to private-name items might restrict shopper decisions.

Impression of Minimal Expense Picture:  A few customers might see Aldi as a financial plan accommodating choice, possibly discouraging higher-pay customers.

Moderately Low Brand Mindfulness: Contrasted with certain contenders, Aldi's image mindfulness might be lower among specific socioeconomics.

Opportunities

Venture into New Business Sectors: Aldi can investigate chances to venture into developing business sectors or areas with restricted contests.

Broadening of Item Reach: Presenting new product offerings, like the 'Luxurious' range, can draw in new client fragments and improve pieces of the pie.

Embracing Web-based business:  Putting resources into online stages can widen Aldi's span and take special care of developing customer inclinations for advanced shopping encounters.

Threats

Extreme Rivalry:  The retail business is exceptionally aggressive, with rivals continually developing and competing for a portion of the overall industry.

Monetary Shakiness:  Financial slumps or variances in buyer spending examples can affect Aldi's deals and benefits.

Administrative Changes:  Changes in guidelines connected with sanitation, marking, or natural principles might require acclimations to Aldi's tasks and techniques (Sarisa, 2021).

2. PESTLE Analysis

Political
- Political stability influences global expansion strategies and sourcing practices.
- Government regulations, such as taxation policies, impact operating costs and pricing strategies.
Economic
- Economic factors like inflation rates and currency exchange rates affect consumer purchasing power and spending habits.
- Economic downturns may lead to shifts in consumer behaviour, emphasizing value-oriented shopping.
Social
- Changing demographics and lifestyle trends influence consumer preferences for food products.
- Increasing health consciousness and sustainability concerns drive demand for organic and environmentally-friendly offerings.
Technological
- Technological advancements offer opportunities to enhance customer engagement and personalize marketing efforts.
- Integration of automation and artificial intelligence optimizes supply chain efficiency and streamlines operations.
Legal
- Compliance with food safety regulations and labour laws is crucial to maintain reputation and avoid legal issues.
- Antitrust laws and competition regulations impact market positioning and pricing strategies.
Environmental
- Growing environmental awareness prompts adoption of sustainable sourcing practices and eco-friendly packaging.
- Environmental regulations may necessitate investments in waste management initiatives and eco-friendly practices (Christodoulou and Cullinane, 2019).

3.5 C analysis

Company:  Aldi's strong image as a brand, streamlined activities, and combined dedication to providing consumers with values are among its primary competitive advantages.

Customers:  Customizing advertising tactics and merchandise offerings requires an in-depth knowledge of client tastes, statistics, and buying habits.

Competitors: Aldi may successfully change and grow by keeping an eye on shifts in the market and competition activity.

Collaborators:  Aldi's distribution network is strengthened and productivity is improved by forming cooperation agreements with sellers, providers, and various other partners.

Climate:  Aldi works in an aggressive and dynamic environment where changes in customer tastes, technology, and regulations are commonplace.

Competitors analysis

Aldi's rival analysis traverses different market portions and sub-sections inside the retail business. Contenders like Walmart, Costco, and Kroger work across numerous fragments, including staple, general product, and web-based businesses. Inside the staple portion, sub-sections like natural, claim to fame, and comfort food sources are areas of the contest. In the general product section, contenders target sub-fragments like home merchandise, attire, and hardware. Furthermore, in the web-based business space, contenders strive for a piece of the pie in sub-portions like internet-based staple conveyance, hardware, and design (Spanjaard and Freeman, 2022).

Articulation of the new product value-proposition

The new 'Luxurious' range from Aldi guarantees clients a novel mix of premium quality, unrivalled taste, and uncommon worth. By offering a choice of connoisseur-motivated food items at reasonable costs, Aldi plans to rethink the impression of extravagance in the buyer's eyes. With careful regard for fixings, flavour profiles, and bundling, the 'Sumptuous' range conveys a liberal feasting experience without the weighty sticker price commonly connected with connoisseur contributions. Clients can hope to appreciate the wealth and complexity of eatery-quality cooking inside the solace of their own homes, making extravagance open to all(Shamsuzzoha et al., 2023).

Development of the marketing strategies

Aldi's promotional strategies for the 'Luxurious' expanded mix of marketing are centred around three key elements: intelligent promotion, affordable prices, and high-quality products. Aldi uses the 7Ps to ensure a better consumer experience via emphasizing the quality of goods via careful procurement and luxurious packing. Aldi's pricing procedures are in line with their dedication to cost effectiveness, providing luxury goods at reasonable prices. Place plans give top priority to effective supply chains and easily accessible showrooms. A combination of online advertising, storefront displays, and temporary promotions are used in promotion campaigns to generate buzz and encourage consumer interaction (Shamsuzzoha et al., 2023).

Setting of an overall marketing budget

Marketing ActivityPlanned Spend ($)
Product Development $200,000
Pricing Strategies $150,000
Promotional Campaigns $300,000
Digital Marketing $250,000
In-Store Displays $100,000
Market Research $50,000
Total Budget $1,050,000

Tactical actions

Carry out designated internet-promoting efforts across virtual entertainment stages.

Introduce a progression of special occasions exhibiting the 'Luxury' range coming up.

Offer restricted time limits and unique proposals to boost preliminary and buy.

Team up with powerhouses and food bloggers to create buzz and support.

Have selective tasting occasions to draw in with clients and accumulate criticism.

Appropriate control and monitoring measures

ObjectiveControl and Monitoring Measures
Increase market share Track market share growth quarterly using market research data and sales figures. Compare against competitors.
Enhance brand perception Conduct regular brand perception surveys to measure changes in consumer sentiment and perception. Monitor social media mentions and sentiment analysis.
Drive sales growth Monitor monthly sales performance of the 'Luxurious' range compared to targets. Analyse sales data by product category and geographical region.
Expand customer base Track new customer acquisition rates monthly. Monitor website traffic and online customer registrations. Assess the effectiveness of marketing campaigns in attracting new customers.
Build brand loyalty Implement customer satisfaction surveys post-purchase. Monitor customer retention rates and frequency of repeat purchases. Measure the success of loyalty programs in driving repeat business.
MetricsDescription
Return on Marketing Investment (ROMI) Calculate ROMI by dividing the net revenue generated from marketing activities by the total marketing expenditure. Aim for a positive ROMI indicating that marketing efforts are generating more revenue than the cost incurred.
Customer Lifetime Value (CLV) Calculate CLV by estimating the total revenue a customer is expected to generate over their lifetime. Monitor changes in CLV over time to assess the effectiveness of marketing strategies in fostering long-term customer relationships and profitability.

Comprehensive media plan

Media Budget

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The total media budget plan apportioned for the promoting effort of Aldi's 'Luxurious' range is $500,000.

Recommendations and Rationale

Television Advertising ($200,000): This type of marketing efficiently showcases to more people the superior quality and decadent character of the 'Luxurious' collection by offering an extensive reach and noticeable effect.

Digital marketing ($150,000): Digital mediums allow for more specific targeting and interaction with an intended audience of wealthy, health-conscious consumers. Examples of these methods include social media marketing, keyword optimization, and celebrity collaborations.

Print Media ($50,000): Brand visibility is increased among affluent groups and the public's perception of the 'Luxurious' line is reinforced through selected insertion in upmarket luxury publications and gourmet periodicals.

$50,000 in in-store promotions: Aldi point-of-sale screens, announcements, and sample initiatives foster engaging customer experiences that prompt quick purchases.

Appropriate Channels

Computerized Channels:  Use Facebook, Instagram, and YouTube for designated promotions and powerhouse joint efforts.

TV:  Select premium organizations with high viewership among the objective segment.

Print Media:  Collaborate with distributors like Food and Wine and Bon Appétit to arrive at prosperous food devotees.

In-Store Advancements:  Execute enrapturing showcases and proposition item tests in high-traffic regions inside Aldi stores.

Justification for Multi-Media Plan

The multi-media approach guarantees far-reaching inclusion across different touchpoints, amplifying brand openness and commitment to the main interest group. TV promotions give expansive reach and visual effect, supplemented by advanced channels offering an exact focus on an intuitive commitment. Print media supports brand pictures among upscale shoppers, while in-store advancements drive prompt buy expectations. Quantitative measurements like reach, recurrence, and cost per impression, joined with subjective variables like brand reverberation and commitment levels, legitimize the choice of coordinated multi-media exercises to accomplish promotional goals and upgrade the brand view of the 'Luxurious' range(Vidor et al., 2023).

References

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