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Lidl is a discount retailer, its one of the most developed discount chains in Europe with more than 10,000 stores in 27 countries, Lidl started off as a small independent grocery wholesaler in the 1930’s and opened its first store in 1973 in Germany. Lidl started opening stores outside of Germany in the 1990’s there is now Lidl stores in most European countries, the first UK Lidl store was open in 1994, there are now over 650 Lidl stores and 10 distribution stores in the UK employing approximately 20,000 people. Lidl's current market share is 5.3%.

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Vision

To enhance the lives of our customers, by providing quality products at market leading value, whilst ensuring that customer satisfaction is at the heart of everything we do.

Mission

To deliver outstanding customer satisfaction.

To ensure market leading quality and value by constantly innovating and optimising our efficient processes, driven by technology and people.

To work with business partners in sustainable relationships, contributing positively to local communities.

To achieve long term success by investing in the recruitment, training and development of our people.

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Lidl's lack of product range and named brands is a strategic challenge for them, with Lidl not stocking many products are named brands consumers then have this perception of Lidl as it being low on quality when in fact Lidl strive in sourcing the highest quality products and have been recognised for this in winning a number of prestigious awards.

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Lack of new technologies and innovations is a strategic challenge for Lidl. Most of their direct competitors such as Asda, Tesco and Morrison's are increasingly turning to technology to aid their service propositions, with an increasing number of consumers expecting the efficient self-service checkouts these help reduce waiting times making purchasing products more quicker and convenient for customers.

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All environmental factors around waste are a strategic challenge for all supermarkets but the one thing currently effecting Lidl is the current headlines regarding how much supermarkets use plastic packaging. An investigation carried out by the Guardian reveals that Britain's leading supermarkets create more than 800,000 tonnes of plastic packaging waste every year.

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Lidl has many direct and indirect competitors, this presentation will be highlighting three of them, two direct Asda and Aldi and one indirect Matalan.

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Direct Competitor's current market share 

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Direct Competitor's current market share 

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Indirect competitors current market share

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Indirect competitors current market share

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Retail industry's consumer Expenditure 2015

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Asda targets its customers through TV adverts, advertising latest deals,offers and roll back events available in store. Asda is also an Omni-channel retailer and offers lots of different products and services within there stores.

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Aldi advertises to customers through TV adverts and on there website, they advertise their special buys and try to create brand loyalty with the adverts. Peoples perception of Aldi just like Lidl think because they don't sell branded items such as Kellogg's, Heinz etc and the products they do sell are cheap they are of a low quality which isn't the case there advertising around this is great and gives a clear message to customers that the products they sell are just as good as the big 5, Asda,tesco,morrisons etc.

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Matalan have a rewards card for customers to sign up to which give them exclusive offers in store and online, reward card customers are the first to hear about new collections, offers and discount's and are also entered into monthly reward card competitions.
Matalan are also a Omni-channel retailer here is there Omni-channel journey.

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Google Search - Matalan's Omnichannel Journey

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Lidl's strategic marketing options to help improve their customer lifetime value

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Lidl's strategic marketing options to help improve their customer lifetime value

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The first strategic option Lidl could implement to improve their customer life time value is to install self service checkouts within their stores.

The second strategic option Lidl can implement to improve their customer life time value is to improve their online presence, expanding their website taking a more Omni-channel approach and introducing a home shopping delivery service.

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The strategic option recommended for Lidl would be the second strategic option, improving their online presence, expanding their website taking a more Omni-channel approach and introducing a home shopping delivery service. Research shows that online grocery shopping in the UK is the fastest growing purchasing channel, in terms of value and growth according to retail analysts IGD. Lidl can measure the success of their new website by using the digital marketing tool RACE.

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Implementing Lidl's chosen strategic marketing plan  

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Implementing Lidl's chosen strategic marketing plan  