Marketing PPT
hiddenwords
whole_foods_project2.pptxWHOLE FOODS MARKET
Marketing Plan
Felicia Wallace
April 19, 2015
Introduction
Whole Foods Market, a chain store supermarket
Founded by John Mackey
Whole Foods Market, Inc., incorporated on August 15,1980
Specializes in natural and organic foods
417 stores in the US, UK and Canada
Headquarters in Austin, Texas
The store first opened its doors in September 20th 1980. The founder is also the one serving as the CEO of the company. The company has set standards that must be met by all the food under its umbrella.
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Market description
Whole Foods is a retailer that sales natural, and organic foods, and groceries. According to Reuters “the Company has one operating segment, natural and organic foods supermarkets.” While Whole Foods offers natural and organic products, their emphasis is on perishable foods. They offer products such as, meat, seafood, bakery items, coffee, teas, beer, wine, cheese, nutritional supplements, vitamins, body care, prepared foods, books, pet products, household items, and they provide catering services (Reuters, para., 2).
Whole Foods is specializing in natural foods that have undergone minimal process and they sale organic foods. To ensure your foods are free of GMO’s you should pay close attention to the product number. Organic products begin with the number 9, while GMO’s begin with the number 4.
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Market description cont.
The Company has 365 Organic Everyday Value brands, which account for approximately half of its brand items (Reuters, para. 2). Additional brands include brands such as:
Whole Foods Market Whole Paws
Whole Catch Allegro Coffee
Whole Fields Engine 2
Whole Pantry Wellshire Farms
Whole Living Nature’s Rancher
The size of the market is a measurably effect, and accessed and identified through advertisements/promotions. At the same time their customers shop their to help support sustainability issues and to protect their environment, by purchasing these brands.
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Product review
Levels of products
Whole Foods Market offers the following products levels:
Organic food products
Body care products
Nutritional supplements & Vitamins
Laundry and cleaning products
Food products include organic items like groceries. Body care products include lotion and skin care products. Laundry products includes laundry soaps and surface cleaning products.
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Target Segmentation
The 18-30 year old age demographic is more likely to shop at Whole Foods regularly
The key customer for the average location is a working parent that is between the age of 30 and 50
Fitness conscious individuals who shop for healthy food, vitamins, and nutritional supplement.
Health conscious individuals who want healthy food for family
Demographical focus on the population that has college degrees (Gaille, 2014)
Whole Foods determines products sold in each of market segments
Market segmentation involves the sub division of a homogeneous market into smaller portions that are identifiable in terms of the same characteristics, needs The main aim of segmentation is to match the specific needs of the customer.
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Factors influencing consumer behavior of primary target market
Culture
Social life
Personal taste and preferences
Psychological factors
Market targeting basically involves the process of segmenting the market. Whole Foods has a particular type of customers that they are targeting with their natural and organic products. Different people have different cultures and that definitely affects what one buys or does not buy. There are those who cannot buy organic foods because of their culture whereas there those who buy organic and natural foods because that is their family, tribe or geographical culture. Different social classes have different buying behaviors. Whole Foods targets its marketing for different social classes to ensure that they do not lock out a particular class. Different individuals have different personal tastes and preference and for that reason, Whole Foods has a variety of products that satisfies the different customer tastes and preferences. Psychological factors like perception and belief greatly affects what a individual will buy and so Whole Foods has invested in advertising and promotion to ensure that customers get to know their products totally and completely.
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Value proposition
Promise of value delivered.
Belief and acknowledgment from customer that value will be delivered
Potential customer is convinced of the value added to the product (s), (Gomez. Cardy & David, 2008)
Committed to satisfy, delight and nourish their customers
Satisfying stakeholders by satisfying their customers
Whole Foods has taken value proposition very seriously and this has made have extraordinary customer services as well as educating their employees on customer satisfaction. This has resulted to meaningful value, retail innovation also creating inviting store environments to attract customers.
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Buyer decision process of the primary target market
Problem or need recognition
Information search
Evaluation of alternatives
Purchasing decision
Behavior after purchase
Before a buyer buys Whole Foods products, he or she must have a need required to be satisfied. The customer will then seek to find information about the possible solutions to his or her needs. He or she will then evaluate the different alternatives available and then make an informed choice based on the one that suits him or her best. The next step is selecting the particular product that suits his or her need after the evaluation. The possibility of the customer buying the product again will depend on how it satisfies his or her needs after using it.
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Product lifecycle
These are the stages that Whole Foods products goes through before reaching the final market.
Introduction
Growth
Maturity
Decline
This is the most expensive stage as the product market is small and sales are low. The growth stage is where Whole Foods started benefiting from the increased sales and profits as a results of benefiting from economies of scale. The maturity stage is where Whole Foods established the market and their main goal was to maintain the established market. The maturity stage is where the market for Whole Foods products will start shrinking and this will be as a result of market saturation.
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SWOT Analysis
| Strengths | Weaknesses |
| Broad product offerings Focused growth strategy | Product Recalls Weak international presence Increasing rental expenses |
Strengths
Focused growth strategy
Whole Foods focuses on expansion, through new store openings in existing and new areas, including internationally. There strategy is to grow through the same store sales growth, acquisitions as well as new store openings has made it rapidly grow in the past.
Weaknesses
Product Recalls
Whole Foods has had to recall eight different products in the period between January 2013 to May 2014. Recurring product recalls affect their brand image which can lead to low customer loyalty and brand equity.
Entire slide, Whatmough, A (2014).
Whole foods has a wide selection of both natural, organic, and gourmet foods for their customers. Whole Foods expands their growth potential, by opening new stores in both trade areas, new areas, and internationally. Product recalls affect the brand image, which affect customer loyalty. The company has 15 stores internationally, which shows a weak presence compared to the US. Rental expenses affect the companies profits and have a negative impact on margins.
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SWOT Analysis
| Opportunities | Threats |
| Greater demand for organic products Increasing popularity of private labels Expanding pet spending in the US | Intense Competition Stringent regulations Whatmough, A (2014) |
Opportunities
Greater demand for organic products
The demand for natural and organic foods has increased, due to the rising awareness of the importance of healthy living. Whole Foods offers products for special dietary needs in the US, and they are well positioned to benefit from an expanding market.
Threats
Stringent regulations
They are subject to laws and regulations that relate to health, sanitation, food labeling, as well as to comply to the provisions that regulate licensing for all alcoholic beverages in many stores. The FDA, FTC, CPSC, USDA, and the EPA set critical standards, and failure to comply can cause penalties and seizure of marketing and sales licenses.
Whole Foods has been able to expand on their opportunities, and minimize their threats, by adhering to the stringent regulations, and a greater demand on natural and organic foods.
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Benefits/features analysis
| Features | Benefits |
| Rich in fiber | Helps in digestion |
| Nutritious | Healthy to you body |
| Natural | No side effects |
If Whole Foods products are considerably cheap, it means that they will be affordable to the targeted market. products that are rich in fiber helps the user in proper digestion of food. Nutritious products will see it through that the consumers become healthy as they continue using the products. The benefit of using natural products is that they do not have any chemicals that are normally added during processing. This make them safe to use.
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Differentiation
Process of distinguishing a product in the market (Lynn & Close, 2011)
New advertising/promotion campaign used to achieve differentiation
Whole Foods products are distinguished in the market by the use of attractive packaging that are eye catching. The company has also invested in advertising and marketing to ensure that customers are well informed of the range of products they are offering. The stores the Whole Foods have created are also unique in nature and targets higher income earners, who are interested in wellness and general fitness.
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Branding strategy
Long-term measures that are taken to ensure product stays in the market
Intensify market to maintain the presence of its products in the market
Lower prices to attract more customers and gain loyalty
What the branding strategy defines is what Whole Foods basically stands for, the promise they make to their customers and lastly the personality they convey.
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Competitor
Trader Joes Grocery store
Trader Joes has more than 400 stores in nearly 40 states. The company offers upscale groceries such as, health foods, organic produce, and nutritional supplements. Unlike Whole Foods, Trader Joes doesn’t have a service department and they average about 12,000-15,000 sq. ft., to keep cost down.
(Hoovers, n.d.)
Whole Foods may only have 362 stores, but their locations are national and international, while Trader Joes may have more stores, their stores are national and they only span over approximately 40 states.
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Competitor
Sprouts Farmers Market, Inc. Grocery store
Sprouts Farmer Market is a fast-growing natural foods retailer that has about 170 stores in seven states out West. This retailer sells organic and local produce, baked goods, and-natural meats and seafood, imported cheeses, bulk foods, vitamins, and supplements. In 2012 Sprouts merged with Sunflower Famers Market, giving them the #2 spot in the natural organic retail market, behind Whole Foods Market.
(Hoovers, n.d.)
Through better advertising, Whole Foods is spreading the word to get the attention of customers, of the benefits of using organic products to their health and general wellbeing and that is a very powerful tool for convincing customers to shop at Whole Foods.
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Competitor
Kroger Co. Grocery store
Kroger may be the nation's largest traditional grocery store however; Wal-Mart overtook Kroger as the largest seller of groceries in the US long ago. Kroger has diversified through acquisitions, by adding jewelry and general merchandise to its mix, but supermarkets still account for more than 90% of sales. The company operates about 3,750 stores, including some 2,640 supermarkets and multi-department stores, under two dozen banners, in about 35 states. It also runs more than 785 convenience stores under names such as Quik Stop and Kwik Shop. Kroger's Fred Meyer Stores subsidiary operates 130 supercenters, which offer groceries, general merchandise, and jewelry, in the western US.
(Hoovers, n.d.)
This is where Whole Foods devices ways of dealing and outshining their competitors in the market. the tools that may be used may also be advertising and marketing so as to show the customers how their products are so much better than those of their competitors in terms of quality and safety.
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Market share
Percentage of the market that a particular Whole Foods product serves
Benefits from economies of scale and perception of the organic products
Whole Foods has greatly benefited from the perception by customers that organic products are crucial for the well being on an individual. This has made it obtain a large market share that has enabled the company to obtain attractive profit margins and prices for premiums.
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Competitive positions and roles
Refers to the position that Whole Foods’ products occupy with relation to competitive products
Food market is very competitive and whole Foods has strategically placed itself a completive position
Role of Whole Foods’ marketing department to ensure that their products are competitively positioned in the market, (Kevin, 2009)
Objective to be achieved, roles must be clearly defined
Whole Foods marketing department has to come up with ways of maintain the presence of their products in the market through the use of persuasive advertisements and marketing techniques.
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Strategic sweet spot
Is a point where the product meets consumer needs but competitors cannot.
Whole Foods products are organic products and that is their major bargaining chip when it come to completion from other products that have undergone industrial manufacturing with chemical additives.
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Positioning
Strategy used to present a product in the best way possible in the market
Increased demand for product
Related to market segmentation
Whole Foods has made sure that it has presented its products in the best way possible by clearly describing their products and how they are of benefit to those who buy them.
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Distribution review
Supply chain members and roles
Supplier: Avails raw materials for processing
Manufacturer: Coverts raw materials into finished products
Distributor: Avails finished products to the market
The major suppliers to Whole Foods are farmers who deliver the fresh farm produce. This is them processed without adding additional chemical to ensure that the products remain as natural as possible. Finished produced are them distributed through the different Whole Foods Market chain stores to the final consumers.
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Value-delivery network analysis
This Involves the value chain that adds value to the consumer, (Foxall, 2005).
Whole Foods has a network of stakeholders who work together to ensure that the final consumers benefit from their products.
The main role of these stakeholders is to ensure that the products being sold in the different Whole Foods chain stores meet the their set standards in terms of quality and safety to the final consumers. This is what ensures that the final consumers benefit form the products.
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Current market distribution strategy
From the manufacturer, Whole Foods products to their chain store where they can be accessed by customers.
They are have an online shop where customers can make their orders.
This helps in availing more units to more consumers in a short time.
Whole Foods used its chain stores to distribute its products because the stores meet their required set standards. This is what makes them unique in the market.
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References
Foxall, G. (2005). Understanding consumer choice. Basingstoke: Palgrave Macmillan
Gaille, B. (2014, September 25). 17 Incredible Whole Foods Customer Demographics - BrandonGaille.com. Retrieved May 5, 2015, from http :// brandongaille.com/17- incredible-whole- foods-customer-demographics/
Gomez, M. & David, B. (2008). Management: People, Performance, Change. New York: McGraw-Hill
Kevin, L. (2009). A framework for marketing management. Upper Saddle River, NJ: Pearson Prentice Hall
References cont.
Lynn, R. & Close, G. (2011). Consumer behavior knowledge. New York: Routledge
Roger, A. (2012). Marketing: The core. New York: McGraw-Hill
Whatmough, A. (2014, June 30). Whole Foods Market Inc. SWOT Analysis. Retrieved April 9, 2015, from https://www.scribd.com/doc/254647463/Whole-Foods-Market-Inc-SWOT- Analysis#scribd
Whole Foods Market Inc (WFM.O) Company Profile | Reuters.com. (n.d.). Retrieved May 5, 2015, from http://www.reuters.com/finance/stocks/co mpanyProfile?symbol=WFM.O
Whole Foods Market, INC. Competition. (n.d.). Retrieved May 3, 2015, from http://www.hoovers.com/companyinformation/cs/competition. WHOLE_FOODS_MARKET_INC.6061e2f55006cb 67.html
