Analysis of Lidls Marketing Strategy | 7Ps, SWOT

Analysis of Lidls Marketing Strategy | 7Ps, SWOT Introduction Lidls history begins in the 1930s, when their first store was created in Germany acting as a grocery wholesaler. Since then, Lidl has now become one of the largest grocery retailers in Europe, with over 600 stores operating in the UK, and thousands based across Europe (Butler, 2014). Although the amount of stores that Lidl have in operation is staggering, it is made even more amazing by the fact they only expanded out of Germany 20 years ago (Lidl, 2015). This rapid expansion has made them one of the most dominant and feared competitors in the UK grocery market, with major grocery retailers constantly trying to minimise Lidls portion of market share. Although Lidls market share in the UK is still relatively small, with them acquiring 3.5% at the beginning of 2015, they are one of the fastest growing grocery retailers. Whilst many supermarkets are losing their market share, Lidls was increased by a stagger 15.1% from 3.1% to 3.5% (FT, 2015). Figure 1 highlights the variation in market share, and how much market share each supermarket currently holds. As previously mentioned, although Lidl have a relatively low market share, they are currently one of the fastest growing retailers in the market. An analysis of Lidls current marketing strategy will be conducted, with particular emphasis on the 7 Ps of marketing. Furthermore, Porters Generic Strategies will be analysed in order to aid in the understanding of Lidls current strategies. This will then be concluded with a SWOT analysis, with recommendations being drawn up via the utilisation of a TOWS matrix. Marketing Strategy Analysis The five core concepts of marketing are; consumer needs/wants/demands, products and services, value/satisfaction/quality, exchanges/transactions/relationships and markets (Kotler, et al., 2008). One of the most efficient ways to analyse these factors is to conduct a marketing strategy analysis, which looks to explore the strategies an organisation utilises in order to grow and expand their market share. 7 Ps Analysis In order to successfully analyse Lidl marketing strategy, a 7 Ps analysis can be conducted, which seeks to analyse some very basic, but significant issues. Originally, the 7 Ps was only comprised of 4 Ps which aimed to address certain issues that would allow a firm to have a more developed understanding of their internal operations. The 4Ps are comprised of; product, price, place and promotion (CIM, 2009). However, due to the limited applicability of the 4 Ps, three more were added to form the 7Ps, which aims to encompass some service qualities the 4 Ps do not cover (Booms Bitner, 1981; Lusch, et al., 2007). Product (Quality, brand name, service line, warranty, capabilities, facilitating goods, tangible clues, price, personnel, physical environment and process of service delivery): Very solid brand name from being one of the cheapest supermarket retailers in the industry. Their main competition as a value supermarket is Aldi (Bosshart, 2006). The products sold in Lidl are often very similar to the goods sold in other supermarkets, such as Tesco or Asda. However, the main distinction would be the different brand names of the products in Lidl stores. Consumers could have a negative perception of the quality of Lidls products as they are sold for such a cheap price (Siro, et al., 2008). Price (Level, discounts and allowances, payment terms, customers own perceived value, quality/price interaction and differentiation): One of the key competitive advantages for Lidl is their clever pricing strategies. Lidl entered the market on the basis of being one of the most value-driven supermarkets in the industry (Dolgui Proth, 2010). All payments are made up before leaving the store at the check outs. As they offer goods at an incredibly cheap price, consumers may believe that the goods they sell are poor quality, however this is generally not the case (Siro, et al., 2008). Place (Location, accessibility, distribution channels and distribution coverage): Lidl have a plethora of stores across the UK and Europe. However, depending on the country, they operate in different segments of the supermarket industry, ranging from value to high-end goods (Butler, 2014). They have a variety of distribution hubs across the UK and Europe to ensure that stores are maintaining a constant level of stock (Brown, 2015). As their business model is to sell as many goods as possible in the shortest amount of time, ensuring stock levels are maintained is incredibly important. This means that it is imperative to have stores in reasonably close proximity to national distribution centres. Promotion (Advertisements, personal selling, sales promotion, publicity, personnel, physical environment, facilitating goods, tangible clues and process of service delivery): Lidl do not current have any loyalty schemes present in the UK, as they believe their pricing model is enough to incentivise consumers. Lidl often have in store promotions, but they do not discount their goods as highly as other retailers due to the low prices that already exist. People (Personnel training, discretion, commitment, incentives, appearance, interpersonal behaviour, attitudes and customer behaviour/degree of involvement): Employees are generally paid a very attractive salary, but have to work incredibly hard whilst on the job. The amount of items scanned is often used as a performance measurement indicator (Ruddick, 2015). High training standards to ensure employees can scan items fast enough and meet all customer needs. Consumers may feel that staff do not pay them enough attention as they are very rushed doing their job responsibilities. Process (Policies, procedures, mechanisation, employee discretion, customer involvement, customer direction and flow of activities): Primary process of Lidl is to purchase and sell as many goods as possible on a low-cost basis. Consumers are not very involved in any of the processes or procedures of Lidl, and would have little power over their business operations. Physical (Environment, furnishings, colour, layout, noise level, facilitating goods and tangible clues): The majority of Lidl stores are laid out in a very linear and traditional manner. This is to aid consumers in finding their goods as soon as possible and having easy access to purchase and leave (Lidl, 2015). Lidl will often exhibit their brand colours, yellow and blue, throughout their stores or surrounding areas. This will help consumers know there is a Lidl nearby. Porters Generic Strategies Porter outlines four generic strategies; differentiation, cost leadership, differentiation focus and cost focus (Porter, 1980). From utilising the information gathered from the 7 Ps analysis, it becomes quickly apparent as to what strategy Lidl are currently pursuing. Lidl have a reliant focus on selling quality products at the cheapest cost possible. This would suggest that they are utilising a cost leadership strategy, and are implemented it with incredible effectiveness (Morschett, et al., 2006). However, in order to maintain their current rate of growth and expansion, Lidl may have to diversify from their current strategies in order to stay competitive and innovative within the UK grocery market. SWOT Analysis Based on the 7 Ps analysis, a SWOT analysis can be conducted in regards to Lidl. The SWOT analysis will help an organisation measure and understand the internal strengths and weaknesses, and the external opportunities and threats facing the firm. Being able to identify these elements will help an organisation to formulate and develop strategies which may build on the strengths, negate the weaknesses, exploit the opportunities or counter the threats (Dyson, 2004). Strengths (Simon, et al., 2010; Kumar Steenkamp, 2007): Strong business structure allows them to sell their products at an incredibly cheap price. Wide range of private labels gives them exclusivity and security. Has a huge amount of stores across the whole of the UK and Europe giving Lidl great exposure. Online presence that showcases the products they have and any deals they may be running. Weaknesses (FT, 2015; Siro, et al., 2008): Does not quite have the market share of the other big supermarkets in the UK, such as Tesco or Asda. Has not been able to spread their operations outside of Europe very successfully. As their products are so cheap consumers can often think that the quality is not good enough. Opportunities (Felsted, 2014): Potential to expand in the UK and acquire a higher share of the UK grocery market. Successfully expanding abroad can provide more funds to invest in the UK. Expand their website to actually accept orders and sell products. Threats (Poulter, 2014): If Lidl were to engage with a price war with other major grocery retailers then they could force competitors prices down. International expansion of other global brands would cause more competition. Aldi surpassing their market share and becoming the dominant discount grocery retailer. Recommendations Together with the SWOT analysis, a TOWS matrix can be utilised in order to develop strategies and recommendations for Lidl to acquire a greater market share of the UK grocery industry (Weihrich, 1982). Based on the TOWS matrix, and the analysis of Lidls current market strategies, three recommendations can be laid that would help Lidl acquire a greater share of the UK grocery market. The three recommendations are; Extend the usability of their website to accept click collect orders or even delivery. This would expand their presence in the UK market. Develop and implement upper-class branded products in order to target a new demographic and compete with the major supermarket retailers on a more even environment. Construct firm barriers of entry to deter other organisations from entering the UK grocery market and potentially encroaching on Lidls market share. In order to stay competitive in the UK grocery industry, and continue to build upon their UK market share, Lidl should utilise the aforementioned strategies. Furthermore, this could result in them following a combination of generic strategies, as the introducing of upper-class brands, in combination with their current business structure, would suggest a differentiation strategy is in place. However, if Lidl pursue the adoption of other strategies, they must ensure that their current consumer base is not alienated, or they could end up losing market share. Furthermore, Lidl should continue to open more stores in the UK in order to expand their presence and accessibility, which will allow their operations to have similar exposure to the other major supermarket retailers. Bibliography Booms, B. H. Bitner, M. J., 1981. Marketing strategies and organization structures for service firms. In: Marketing of Services. Chicago: American Marketing Association, pp. 47-51. Bosshart, D., 2006. Cheap?: The Real Cost of Living in a Low Price, Low Wage World. London: Kogan Page Limited. Brown, G., 2015. Giant Lidl distribution hub to create 500 West Midlands jobs. [Online] Available at:Â  http://www.birminghampost.co.uk/business/business-news/giant-lidl-distribution-hub-create-8883111 Butler, S., 2014. http://www.theguardian.com/business/2014/jun/27/lidl-launches-store-expansion-programme. [Online] Available at:Â  http://www.theguardian.com/business/2014/jun/27/lidl-launches-store-expansion-programme CIM, 2009. Marketing and the 7Ps, s.l.: Chartered Institute of Marketing. Dolgui, A. Proth, J. M., 2010. Pricing strategies and models. Annual Reviews in Control, 34(1), pp. 101-110. Dyson, R. G., 2004. Strategic development and SWOT analysis at the University of Warwick. European Journal of Operational Research, Volume 152, pp. 631-640. Felsted, A., 2014. Lidl expansion to crank up pressure on big stores. [Online] Available at:Â  http://www.ft.com/cms/s/0/2465c426-fd53-11e3-bc93-00144feab7de.html#axzz3giD80B9c FT, 2015. Half of UK shoppers visited Lidl, Aldi over Xmas. [Online] Available at:Â  http://www.ft.com/fastft/260632/half-of-uk-shoppers-visited-lidl-aldi-over-xmas Kotler, P., Armstrong, G. Saunders, J., 2008. Principles of Marketing. 5th ed. s.l.:Prentice Hall. Kumar, N. Steenkamp, J. B. E. M., 2007. Private Label Strategy: How to Meet the Store Brand Challenge. Cambridge: Harvard Business Press. Lidl, 2015. Customer orientated expansion. [Online] Available at:Â  http://property.lidl.co.uk/cps/rde/xchg/lidl_uk/hs.xsl/5187.htm Lidl, 2015. http://www.lidl.co.uk/en/659.htm. [Online] Available at:Â  http://www.lidl.co.uk/en/659.htm Lusch, R. F., Vargo, S. L. OBrien, M., 2007. Competing through service: Insights from service-dominant logic. Journal of Retailing, 83(1), pp. 5-18. Morschett, D., Swoboda, B. Schramm-Klein, H., 2006. Porter outlines four generic strategies; differentiation, cost leadership, differentiation focus and cost focus (Porter, 1980).. Journal of Retailing and Consumer Services, 13(4), pp. 275-287. Porter, M. E., 1980. Competitive Strategy. s.l.:Free Press. Poulter, S., 2014. Aldi and Lidl to force big four supermarkets into price war to stop stampede of customers to discount chains. [Online] Available at:Â  http://www.dailymail.co.uk/news/article-2539064/Aldi-Lidl-force-big-four-supermarkets-price-war-stop-stampede-customers-discount-chains.html Ruddick, G., 2015. Supermarkets could increase prices to pay for living wage. [Online] Available at:Â  http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11736662/Supermarkets-could-increase-prices-to-pay-for-living-wage.html Simon, H., Gathen, A. V. D. Daus, P. W., 2010. Retail Pricing Higher Profits Through Improved Pricing Processes. In: Retailing in the 21st Century. Berlin: Springer Berlin Heidelberg, pp. 319-336. Siro, I., Kapolna, E., Kapolna, B. Lugasi, A., 2008. Functional food. Product development, marketing and consumer acceptance—A review. Appetite, 51(3), pp. 456-467. Weihrich, H., 1982. The TOWS Matrix A Tool for Situational Analysis, San Francisco: Long Range Planning .

Essay --

1. What is RCRA and what are its goals and objectives? Resource Conservation Recovery Act of 1976 was created to regulate solid waste and hazardous waste as well as regulate underground storage tanks. The goals and objectives of the RCRA are: †¢ Protect human health and the environment from the potential hazards of waste disposal †¢ To conserve energy and natural resources †¢ To reduce the amount of waste generated †¢ To ensure that wastes are managed in an environmentally sound manner (EPA, What is RCRA?, 2010) 2. What are the two agencies that regulate the generation and transportation of hazardous waste? Briefly describe these agencies. The 2 agencies that regulate are the EPA and the Department of Transportation (DOT). The EPA is known to all as the Environmental Protection Agency and is the main government control group. All other entities report to the EPA. The DOT is the Department of Transportation. This group is in charge of everything that moves across the nation on wheels, and has the record control. 3. What is a hazardous waste manifest and what is it used for? The ...

Ethics †Morality Essay

Introduction Based on society’s ethics, laws are created and enforced by governments to mediate in our relationships with each other. Laws are made by governments in order to protect its citizens. The judiciary, legislature, and public officials are the three main bodies in a government that are assigned to the task of the creation of laws. Laws have to be approved and written by these three branches of government before they are implemented and enforced by the police and the military, with the help of the legal system consisting of lawyers and other government servants. While laws carry with them a punishment for violations, ethics does not. In ethics everything depends on the person’s conscience and self worth. Driving carefully and within the speed limit because you don’t want to hurt someone is ethical, but if you drive slowly because you see a police car behind you, this suggests your fear of breaking the law and being punished for it. Ethics comes from within a person’s moral sense and desire to preserve his self respect. It is not as strict as laws. Laws are codifications of certain ethical values meant to help regulate society, and punishments for breaking them can be harsh and sometimes even break ethical standards. Legal and Ethics Behaviors Legal behavior refers to the variations in the degree of governmental social control of one’s behavior for instance not obeying the traffic laws. Ethical behavior on the other hand is being in accordance with the accepted principles of right and wrong which govern the conduct of a profession. For example dealing badly with your female employees is unethical but not illegal. In an ideal society however legal and ethical standards/laws should be the same. Ethical behavior means characterized by honesty, fairness and equity in interpersonal, and professional academic relationships and in research and scholarly activities. Ethical behavior respects the dignity, diversity and rights of individuals and groups of people. DEFINITION OF ETHICS * In general, ethics is a moral philosophy where a person makes a specific moral choice and sticks to it. DEFINITION OF LAW * Law is a legal system comprising of rules and principles that govern the affairs of a community and controlled by a political authority. Law differs from one country to another. Differentiate in between legal and ethical behaviors. Law| Ethics| * Punishment| * No punishment| * Cannot be enforced independently| * Can be enforced independently| * Legal standards are negative. | * Ethical standards are more positive. | * Control by government| * Guideline from parent or teacher| * Law only doing what is legal. | * Ethics is doing the right thing. | * Must be follow| * Free to follow| * Universals| * Depends On Country| A certain behavior could be legal but not ethical. Example like at below: * Lying. * Abortion. * Artificial contraception. * Sleeping in class when teacher teaching. * Littering in public places. * Loud music when midnight. * Spitting in public places. * Read her/him diary without he/she approve. * Anywhere into other people’s rooms. * Using horn at the area hospital Engineer’s Role in Ethics. Engineer’s role in ethics is hold paramount the safety, health, and welfare of the public. So engineers need learn engineering ethics. Engineering Ethics is the study of moral issues and decisions confronting individuals and organization engaged in engineering. Why Is Engineering Ethics Important? * sensitizes us to moral issues faced in the workplace * engineering Choices can affect public safety * employer or outside forces such as time and cost impact decisions * laws do not cover all areas involving ethical choices * helps one learn to avoid issues before they arise * recognizes there are gray areas governing our behavior. Engineering ethics is the field of applied ethics and system of moral principles that apply to the practice of engineering. The field examines and sets the obligations by engineers to society, to their clients, and to the profession. As a scholarly discipline, it is closely related to subjects such as the philosophy of science, the philosophy of engineering, and the ethics of technology. Engineering ethics also is professional ethics, as opposed to personal morality. It sets the standards for professional practice, and is only learned in a professional school or in professional practice. It is an essential part of professional education because it helps students deal with issues they will face in professional practice. The best way to teach engineering ethics is by using cases—not just the disaster cases that make the news, but the kinds of cases that an engineer is more likely to encounter. Many cases are available, and there are methods for analyzing them. Engineering ethics can be taught in a free-standing course, but there are strong arguments for introducing ethics in technical courses as well. Engineering is something that engineers do, and what they do has profound effects on others. Engineering ethics is an essential aspect of engineering itself and education in professional responsibilities should be part of professional education in engineering, just as it is in law and medicine. Engineering organization’s role in promoting ethical behavior Leader’s ability to motivate subordinates plays a key role in maintaining an ethical organization. Motivation is a force within the individual that focuses his or her behavior toward achieving a goal. To create motivation, an organization offers incentives to encourage employees to work toward organizational objectives. Understanding motivation is important to the effective management of people, and it also helps explain their ethical behavior. For example, a person who aspires to higher positions in an organization may sabotage a coworker’s project so as to make that person look bad. This unethical behavior is directly related to the first employee’s ambition (motivation) to rise in the organization. Recruitment and selection procedures are can use to influence the character of their employees in organization. Conclusion 1. Legal is the law of the Land, Ethic is the law of a Good/ Kind Heart 2. Ethics are rules of conduct. Laws are rules developed by governments in order to provide balance in society and protection to its citizens. 3. Ethics are moral codes which every person must conform to. Laws are codifications of ethics meant to regulate society. 4. Ethics does not carry any punishment to anyone who violates it. The law will punish anyone who happens to violate it. 5. Ethics comes from within a person’s moral values. Laws are made with ethics as a guiding principle. References 1. http://www. linkedin. com 2. http://quizlet. com 3. http://www. ehow. com 4. http://www. differencebetween. net 5. http://engineering. missouri. edu.

Workplace Culture - 8726 Words

HR articles: Workplace culture Workplace culture is often hard to describe, because it means something different in every organisation and many times employees feel it’s ‘just the way things are’. But so often it can define a company and when it’s not working well, everyone knows about it. Below are some blog posts on what culture in the workplace is and how to positively cultivate it throughout your business. The happier an employee is at work, the more productive they are. It’s never too late to make improvements. Culture: Your Environment for People at Work Susan M. Heathfield Human Resources Guide What Is Organizational Culture? People in every workplace talk about organizational culture, that mysterious word that characterizes a work†¦show more content†¦* Sub-cultures Form Through Rewards.. Employees have many different wants and needs. Sometimes employees value rewards that are not associated with the behaviors desired by managers for the overall company. 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