1.

Marketing

Marketing is an essential component for attaining market share within the market from the
existing competitors. Therefore, our client will need to set up and launch both in store and out
store marketing campaigns to attract customers and communicate that by switching their
products from the branded products to the private label category they can save money.
Although our marketing recommendation to the client is still in the initial phase but based on
our initial market research as to how other outlets have conducted marketing for private label
categories, we suggest Blind taste tests (Exhibit 7). These taste tests will communicate that
majority of consumers that liked the famous brands also liked our private label brands.

During our secondary research about the trend and the best practices for marketing of private
label products, we learned that according to a comprehensive market by Deloitte in USA that
Private label brands are winning the battle for market share against the established brands. The
reasons are that customers are becoming more aware regarding the fact that there is very little
difference in quality between the two brands and the additional premium paid is for the
advertising done by the established brands. Therefore, we can also conduct other campaigns to
increase awareness such as: ‘Like Brands’ ‘Switch and Save’ ‘Like Brand Only Cheaper’. These
campaigns will be focused on communicating to the consumers that our products are of the
same quality as the branded FMCG ones but only cheaper in terms of prices.

From our secondary research, we have learned that ALDI performs both Above-the-line (ATL)
and Below-the-line (BTL) marketing i.e., it utilized both the offline and online mediums in
getting its messages across. But our budget and the financial constraints, we recommend BTL
only for our client, because our client is already involved in conducting online marketing for its
other apparel brands. Furthermore, we believe that the popularity of the social media, and the
penetration of the internet in Pakistan makes BTL much more effective for getting our messages
across to our target customer group.

1.1 Launch Campaigns for different Product Categories

It is important that the consumers are made aware of the availability of our private label
products in the different categories. We also need to communicate the differentiating factor
associated with our products such as the comparable quality with the branded products and
the lower prices through which they can save 20% on each product by switch from branded
FMCG product to our private label products.

For instance, for Cleaner category, our private label product will be competing against Harpic
and other store owned brands. We can have a launch campaign for this category in which its
effectiveness in cleaning the washroom is compared is compared against the competitors.
Through this campaign we will be communicating the quality aspect of our brands as well as the
savings that can reaped from purchasing our products. Therefore, we will be highlighting the
low-price aspect of our brands as well.

Similarly, for food product categories such as Beverages or Bakery products, we can launch
blind taste campaigns where consumers themselves will be part of our activity. While being
blindfolded they will given ……..

1.2 Digital Marketing

Internet age has transformed traditional marketing. The advent of digital communication media
has offered tremendous support to small businesses and it has fired an era of entrepreneurism.
Offline marketing focuses on creating brand awareness and ignites a need for the product a
company is selling, whereas at online platform data driven behavioral studies assess a customer
needs and connect them to potential seller. Now digital marketing comes here to aid the seller.

Digital marketing is defined as the use of digital channels and tactics to connect to the customer
who spends time online. This includes Social Media Marketing (SMM), Search Engine
Optimization (SEO), Search Engine Marketing (SEM), Content Marketing, Email Marketing,
Online Advertising, Smartphone Marketing, Affiliate Marketing, and Viral marketing etc.

1.3 Below-the-line promotion

Given the high costs associated with above the line promotions, we had recommended to
conduct promotion on social media platforms. Social media is a brand's personification in the
modern age. It allows a brand to engage with its existing customers and attract new customers
by presenting its offering with authenticity. Strong presence on social gives authenticity to a
brand and allow its customers to express their affiliation with their favorite brands.

HKB already has promotes its clothing brands through its Facebook page, which already has
over 32,000 likes and followers. There we can promote the launch of our private label stores
and different categories launch through this page

1.4 Email/WhatsApp Marketing

Through our secondary research on how other established players in the market promote their
private label products, we learned that E-mail marketing is significantly used in North America
and Europe. Email marketing is one of the core promotion strategies for ALDI. They sent out
regular emails to their entire database informing them about any new promotion, new product
launches, and specials for the following week.

Although in Pakistan, we believe that E-mail may not be as effective since a significant portion
of people who shop for groceries will either not have created email ids or will not check them
regularly for this purpose. Therefore, we recommend sending such promotional reminders to
their database of customers through WhatsApp from official business number. Through
WhatsApp we can also respond to our customers general queries and this will further improve
our stores desirability for these customers.