Aldi's Global Expansion: Analysing Market Entry to Canada Case Study

Aldi's Global Expansion: Analysing Market Entry to Canada

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Introduction: Aldi's Global Expansion: Analysing Market Entry to Canada

The report will be done on the topic of the global market and the consumer. The analysis of the factors was done with the help of the data presented. The report suggested a critical analysis of the market and the scope of expanding into other foreign countries. Aldi is a UK-based company that tends to expand its market in Canada. The future plans of the company and the developed plan for expansion are been explained in the report. The nature of the consumer in the expanded company is critically analysed, and the new business plans are developed according to the needs of the company. The company also looked into the factors of the new rules and regulations of the new country and the taxation system. Some theories for the company in the market have been researched and implemented for the expansion. Profit and commercial benefits are also looked for in the development of the company in the new market of Canada. The rising GDP of Canada can help the company grow at its best. The policies of the open market adaptation of the country will be an important factor for the successful establishment of Aldi. The report will help to analyse the factors of the targeted market and the implementation of the plans regarding it.

Section 1: Critical evaluation of the organisation in one or more established market

Aldi is one of the leading companies in the UK market and has expanded in many countries. The company focuses on food ingredient supply, grocery stores, and supermarkets. The company was started by Karland Theo Albrecht in 1946 asa brand based on multifunctional grocery stores (abf.co.uk, 2023).The company there turned into a huge global company in the UK with a lot of hard work and passion from the founder. The company is one of the best companies in the UK, retailing the best groceries and food items. The version of the company is to provide consumers with the best nutritional product at an affordable price, which can also be value for money. The trust and relationship with the company have been well established over the past 81 years. Most households in the UK are likely to use this brand as their grocery, as it is affordable and one of the best products on the market. The retailing of grocery and food products at the best price plays an important role in the company. The best achievement of the company is the suitability policies they have followed for years now and still manage to achieve good revenue for the company (Abdurakhmanova and Abdurakhmanov, 2019).

Goals of the company

The sustainability goals and the products are mostly based on the policies that are developed and follow the rules of the country. The company maintains a diverse group for targeting the market in the country of origin and other countries they have expanded. According to the work done byDe Mooij (2019), the company is marked as a remarkable company and they prioritised the people working for the company. Safety, hygiene, and cleanliness are some of the factors that the company looks into and this makes the company different from its competitors. The company also targets to achieve it with the help of the shareholders to create a safer workplace, promote thriving and also a fair workplace that is responsible for treating every individual with equity. The relationship of the company with the consumer is very strong, as they have a huge marketplace and are one of the most trusted brands. The consumers are loyal to the brand and the rate of the respective customers are also very high. According to the work done by Aschemann-Witzelet al. (2021), products like salmon, raw meats, and fish are supplied by the company and are liked by people as they are fresh and are available at the best price. In order to achieve the best, the company promotes integrity in the workplace and also respects the diverse culture of the people working for it (Bassette et al., 2021).

Marketing Strategies

The marketing policy commonly used by the company is the DTC policy, where the brand targets the consumer directly rather than using any kind of mediators. According to the work done by Istantiet al. (2020), the product of the company is so valuable to money that the consumers are using the product in a repetitive manner. The strategies followed by the company are the four P's policies that helped the company grow at its best. The value set for company ethics is some of the best policies that attract workers, and the production of the company increases (Minet et al., 2019). Aldi Company also tends to collaborate with other global and local companies of the countries in order to learn about the local market of the place. The strategies are very clear for the company and they focus on the sustainable growth of the business in the long-term process and increase the value of the shareholders in the company and the growth of the company by taking responsible and effective decisions on the business plans. According to the work done by Zwanka and Buff (2021), the marketing strategies of the company are very effective and are always implemented in a smart manner that always supports the growth of the company as a Global company.

Section 2: Proposal of the company for entering the new market

Aldi Company is one of the largest companies in the UK and are currently present in 53 other countries. The company is focusing on expanding in the Canadian market. According to the work done by Selva and Arunmozhi (2020), the company tends to expand in the company of Canada, as it is considered to be the company accepting open policies and is one of the most developed countries in the world.Canada is considered a developed country and also has one of the largest economies in the world. The GDP rate of Canada is 4.5 %, and it has a high-mix economy. The diverse economy of the country helps the country earn more (Irfanet et al., 2020).

Figure 1: Canada Functional market

The above graph indicates the rising rate of the GDP of Canada. The growth of the Canadian economy is rising and this can result in the success of the company. The company may follow some proper strategies that can be implemented before entering the new market (Van den Brinket et al., 2020).

Propose strategies

The proposed strategies can be dependent on gaining knowledge of local laws, the market requirement, the challenges faced by logistics, and hiring local people.

Cultural norms

Every individual company follows different cultures as an individual. According to the work done by Steenkamp (2019), the company based in the UK has different work cultures and the Canadian market have been 4.5 different. The organisation needs to gather proper information about the culture and implement the plan according to it. The company may adopt a new work culture to establish it in the new market. The policies regarding cultural practices at the workplace may differ and the new company expanding in the Canadian market needs to adopt the culture and plan accordingly (Cohen and Lee, 2020).

Knowledge of the Local Laws

The laws rules and regulations of every country are different from each other. The policies on new company establishment are different as the Canadian market follows open market policies and maintains them. According to the work done by Matsopietroi et al. (2020), Aldiis the company that needs to do in-depth research on the new rules and regulations of the company. According to the research, the company can make the required changes to its policies if required. Along with this, the company must take care of the new rules and regulations in order to expand in the new country (Zhanget et al., 2023).

The Local market requirements

Adopting the requirement of the local market and then starting to produce the products is necessary for the new company to establish . Understanding the gap between the market and then implementing the plans can work for the company. The pricing of the product may depend on the competitive market. According to the work done by Wanget et al. (2022), the prices of the products can be an attractive point in the market for targeting consumers.

Figure 2: Canada Functional market

The above table elaborates on the scope of the growth of the retailer and food market in Canada. The rise in growth can be a factor that attracts companies from other worlds to open new businesses and expand in the Canadian market. According to the work done by Kraet al. (2020), this can be helpful for the company as well as the country, as both the economy and society can be affected by it. The graph explains briefly the rise and scoop of dairy products, bakery retail chains, and many more (Hamisi, 2021).

Logistical challenges And Hiring of Local People

The import and export policies of Canada are different from the policies of the UK. Import and export, and the logistics role in the business of retailing the product, as the company needs to continuously balance the availability of the product. According to the work done byShih (2020), the hiring of local people is essential for the company as the people can communicate in the local languages. Along with this, this will also help to understand the need of the local people and can be communicated easily. The hiring of people in the new company is a marketing strategy that can be followed by the company to grow in the new market of Canada (Tiene et al. 2019).

Target of the company

The target of the company is to provide the best and most fresh product at the best price. The supermarket and retail industries are the rising industries in the market in Canada. The retailing company in the market in Canada can target the population easily, as the people of Canada like chains providing fast and fresh products. Aldi can target places like Vancouver, Toronto, and Ottawa, as the number of immigrants is higher there. The company can start by understanding the changes in the behaviour of consumers and the need for the product, and they can target on that basis. Starting the company and building a loyalty base is important for the new company, and it can be created by building trust and targeting new consumers. In this segment, advertising the company is essential to target consumers (Mayyaset et al., 2019).

Theories and Expansion

The company can use market expansion theory to expand its business in the new international market. The company can also use the 4Ps—price, people, product, and place—for expansion. The four Ps are used as the fundamental of any business and are followed by every company for implementing new ideas in the market and theories include mixed marketing strategies for expansion. Market penetration can be used by companies to start an existing successful product in the market globally or in a wide range of ways. The theories can help the company grow and expand in a wide range of ways (Sánchez-Floreset et al., 2020).

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Conclusion

In order to conclude the report, the global market is being analysed, and the plants for expanding the market are being suggested. The complex nature of the report helped in analysing the market in Canada and the global market. The theories for the implementation and expansion are discussed in the report for the growth of the company. The difference in the work culture needs of consumers and the gap in the market are analysed in depth in the report, and this can help the company grow in the global market and expand in the market of its desire.

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