In our previous article, we learned in detail about the SWOT analysis of Lidl. In this article, we are going to extensively study the marketing strategy of Lidl – a famous international retail chain company.
In this blog, we hope to make you understand the transition of Lidl from a single grocery wholesaler store to becoming an international retail chain company.
Also with rapid growth and extension, everything is going digital. So is the case for marketing as well. We know that marketing plays a vital role in making a company, brand, or product famous and now it has also gone digital. Therefore if you want to learn about digital marketing and excel in its skill, we have got your back with IIDE’s Free MasterClass on Digital Marketing 101 by our Founder and CEO, Karan Shah.
We will cover the marketing strategy of Lidl in detail in the upcoming section of the blog.
Operated over 12,000 stores across Europe and the United States, Lidl – the part of Schwarz group is one of the international discount retail chains which originated in Germany. Founded in 1932 with the name Schwarz-Markt by Josef Schwarz partnering with Lidl & Co. with the purpose to develop the company into a general food wholesaler which was previously a fruit wholesaler.
Later on, in 1977, Josef Schwarz’s son Dieter Schwarz did not agree to use the name Schwarz-Markt because of the meaning of the name which is “Black Market”. So, he decided to use the name of his father’s former business partner. This is how Lidl got the name Lidl.
|Area Served||European, United States, United Kingdom, Switzerland, Serbia|
|Industry||Retail Chain Company|
|Market Share/ Revenue||U.K.: 6.4%, Europe: 7.5%|
|Vision||To enhance the lives of our customers, by providing quality products at a market-leading value, whilst ensuring that customer satisfaction is at the heart of everything we do.|
|Tagline||High quality. Low prices. It’s quite simple. Big on quality, Lidl on price.|
Marketing Strategy of Lidl
Lidl’s marketing strategy is a low-price strategy that aims to provide a hassle-free shopping experience to its customers, with an extremely simple store layout.
Segmentation, Targeting, and Positioning
The market of Lidl has been segmented using the psychographic segmentation strategy or psychological segmentation technique. It means it focuses on customers who are price conscious, have a limited budget and choose to buy products of poor/mediocre quality.
Lidl knows that in this sector which is based on quality and brands, the segment is not loyal and is only attracted by promotions, new products, and offers which makes it difficult to retain them in the long run. They only contribute to the sale of products for the short term.
The targeting strategy used by Lidl is an undifferentiated strategy that plans to take over the market globally. The procedure of making the product is the differentiator for Lidl. The low-cost pricing strategy along with quality products helps in attracting customers to its stores. The approach of Lidl toward Its target audience is of zero waste, no-frills “pass-the-savings-to-the-consumer” by displaying most of its products in their original delivery cartons, which allows the customers to take the product directly from the carton.
The store Lidl can be found at almost all the popular places for grocery shopping. The strategy of Lidl to keep low prices and quality products is a good ELDP. In this way, it ensures that the demand is steady. As it has been proven that positioning strategy has a significant impact on business performance. It’s good to have your business positioned at places where your target audience is active and it has been proven by Lidl.
- Big on quality
TV Ad | Big On Quality For All | Lidl GB
It is about the quality product offered at a low price by LIDL. This ad was successful for its eye-catching tagline “Big on Quality” and “LIDL on price”. Lidl from this advertisement is trying to express that the products from different categories they sell are big on quality and Lidl on price or price effective. The advertisement appealed to the Youtube audience and the video got more than 48k+ views.
Lidl launched its campaign for the first time on digital platforms rather than on TV due to the pandemic in 2022. The campaign was launched on Twitter which created a sensation in the market.
The campaign became successful because Lidl fostered exclusivity by sending reminder tweets the day before the campaign was launched which made the users of Twitter curious to know about the campaign.
#LidlSurprises: Our Saint-Emilion Grand Cru wine
4-6 years ago Lidl conducted a series of campaigns in which the brand was seen promoting various food and beverages items that are sold under the brand name Lidl. The hashtag used to make the advertising campaign popular was #Lidlsurprises.
#Lidlsurprises campaign became popular due to its authenticity, consistency, human factor, and experiential marketing. And it continues to surprise us with its every campaign.
Social Media Marketing
Lidl has been active on all the major social media platforms like Twitter, Facebook, Instagram, etc. following the trend along with the world. It has established its foothold on the social media marketing platform.
Twitter – Followers: 385K
Facebook – Followers: 1.7 M
Instagram – Followers: 325K
Although Lidl has the most followers on Facebook, most of its campaigns like #Lidlchristmas, promotion, and the product have been launched through the Twitter platform and have even managed to create market buzz because of this. From this, we can see that Lidl has most of the target customers on Twitter.
For being the top in the SERP in today’s world, SEO plays an important role in it. As the organic traffic on the Lidl website is very good which is 1,244,551 monthly and has topped in many of the keyword research, we can say that the traffic is very good on Lidl’s website and we can conclude that Lidl optimises SEO very well for its marketing strategies.
Lidl has launched an influencer campaign with the tagline #LidlStudio. Well-known influencers like Riccardo Simonetti, Valentina Pahde, Shanti Joan Tan, Patrizia, and Palme along with 16 others will be featured on Lidl’s social media accounts. This campaign with the social media stars was first started on Instagram with the tagline #spottedatLidl. It has also helped Lidl in growing its customer base as more and more people came to know about it and its product.
Lidl has made all types of products available on its website. Even other websites help Lidl in selling its product and offer to book orders from the website and its app itself. Although Lidl still claims that it is not interested in online marketing despite its rivals like Aldi launching trials in the market for online selling. It can be seen from the way Lidl has started making its presence felt that, it won’t be long before Lidl launches its own trials in the market for online selling.
Lidl has its own mobile app called Lidl Plus where you can access all of its current and upcoming offers. The app also has a country selection option which makes it easier for buyers to purchase the products in their own country. It also includes features like a Lidl store locator, Lidl app reminder, Lidl search function, etc. Lidl also has apps like Lidl Connect and Lidl Home available on the google play store and apple store.
Content Marketing Strategies
Lidl writes blogs and listicles on its website to attract customers. along with this its promotion tactics like #bigonquality, #Lidlchristmas, and #Lidlsurprises are creating a buzz on social media accounts. They are customer-oriented as well which helps in attracting more customers.
Lidl has approximately 880K followers on its social media accounts across the world and over 16k subscribers and millions of youtube views. It can be said that Lidl has good content marketing strategies.
This ends the elaborative marketing strategy of Lidl. Let us conclude our learning below from the marketing strategy of Lidl.
What’s Unique in Lidl’s Marketing?
Lidl is the best among grocery retail chain companies, be it in terms of products, services offered, quality or cost, etc. Over the years it has grown to become a giant in the market of US, UK, Europe, and Germany retail companies.
Lidl’s ways of promoting itself are unique as can be seen from its popular tweet of #Lidlchristmas. Its campaign #Lidlstudio has also been gaining popularity and attracting customers.
Lidl has incorporated digital marketing in a commendable way. Its marketing largely depends on digital platforms and through this case study, we can comprehend that there is a balance between organic and paid digital marketing campaigns for the company.
Digital marketing is crucial since it links a company with its clients when they are online and is effective across all sectors. It links businesses with ideal consumers through SEO and PPC on Google, social media marketing, and email marketing. If you would like to learn more and develop skills, check out IIDE’s 4-Month Digital Marketing Course to learn more.
Alternatively, you can enrol in one of our free online masterclasses led by IIDE’s CEO, Karan Shah, to gain insight into the field of digital marketing.
We hope this blog on the marketing strategy of Lidl has given you a good insight into the company’s marketing strategies.
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