Decoding Whole Foods Marketing strategy
Whole Foods Market's marketing allows the company to connect with customers. The marketing mix explains the business strategies to execute the marketing plan. In Whole Foods Market's Case, target customers are busy through the company's growing marketing mix. The success of the industry as the top achieving health food store chain in the United States reflects the success of its marketing. The whole Food market is booming in using public relations, also in pointing out the benefits of its products and business.
Whole Foods Market is an American supermarket chain with its headquarters in Austin. It was started in 1980 with the mix of Safer Way and Clarksville Natural Grocery Stores. Today Whole Foods Market has stored over 400 in the USA, Canada and the United Kingdom. It has more than 91000 workers. The company is traded on Nasdaq with a market funding of over $10 billion and is a Fortune 500 company. It is the nation's largest retailer of organic foods, 5th largest public food retailer. It is the 10th largest retailer overall based on 2014 sales rankings—the company focuses on promoting vitality and well-being for people by supplying quality foods. Company's primary objectives are selling the highest quality natural and organic products. Also, support team people for excellence and create wealth through productivity.
Here are decoded Whole Foods Marketing strategies:
Knowing the market and competitors
In any industry or business, understanding the market is vital to find success. It helps you to understand what is trending and give a clear insight into your customer's needs.
One of the best ways to know the competition is by conducting Porter's Five Forces analysis. This is a research model that gives clear information on competitive forces that shape an industry. Factors that affect competitive analysis are:
This applies the ratio of the companies that enter the market when you are entering. They have good knowledge of customers needs and requirements.
Competitors check possible brands that can enter the market. Researching the market health and economic scenario of the country is essential. Check on the demand trends and supply in the industry.
This factor refers to the availability of services in the market. You get clear insights on the openness of your brand. You can also register details of suppliers, wholesalers and intermediaries.
Customers apply to the purchase of trends and control of the brand's target audience. The market research provides you with an idea of customer demographic and income. Depending on these data, you can check the cost of the product and its profitability.
Threat of substitution
In this section, marketers can get insights on:
- The openness of the brand for customers.
- Ability to find an alternative brand
- The uniqueness of product/service
- How it can affect on Company's ROI
Whole Foods Market has only one operating section, a natural and organic foods supermarket. This section is a $100 billion market with YOY rise of 9%. The retailers in this section are health conscious, and are concerned with food production. Trader-joes, Sprouts Market are competitors of Whole Foods in this section. Lately, more supermarket chains are selling organic and natural foods for less price.
The target customers for Whole Foods Market are individuals and families. Their earnings are above the national average. They manage a healthy lifestyle and are conscious of the environment. Most of the customers have a degree and live in an urban area. Another target group of Whole Foods are moneyed customers. These customers will not look for discounted prices or coupons and are against Walmart. They often buy high end and expensive options at Whole Foods. The customers at the Fremont store are families, students working for tech companies. Most buyers were not just shopping for groceries but sampling the foods and having brunch.
Whole Foods is presently targeting a new group of customers. This group involves recent college graduates with more progressive values. They are conscious about saving money and ready to travel. Whole Foods Market is starting a new way for stores, especially targeting this group. Of people.
4. Consistency in Test Innovation
Customers often need what they need until they see it. To become successful in retail. They need to be in constant "test and learn" mode with various actions in the hopper to check which works. Whole Foods is offering alternatives for their employee's health programs to consumers. It includes nutrition, cooking. Health estimates depend on their hometown headquarters of Austin, Texas.
Foods Market positions are the best source for healthiest, natural and organic foods. It is also the first grocery store to be "Certified Organic" in America. Its stores are certified, and operations, and till now it is the only food retailer that has all stores accredited locations. Whole food distinguishes from its competitors, depending on its powerful high-quality standards. It is also certified by California Certified Organic Farmers. Plus an independent, USDA-accredited, third-party certifier. CCOF's organic Certification Program validates Whole Foods. It also manages organic goods according to stringent USDA guidelines. One of the vital positioning strategies is the supply chain. It obtains its products from local and global producers. It assures that products are produced without breaking any labour laws.
With Whole Foods under its shade for the last two years. Amazon had raised the visibility and benefits for its Prime members. Amazon’s acquisition of legacy grocers and merchants to beef up their eCommerce services. Online Amazon may have significant grocery market share. But is far from an overall grocery giant.
Amazon's acquisition of Whole Foods market is a popular business law case study that students often get. Business laws govern the rules of conducting business. These regulations assure that the market is fairly playing for all companies. A business law case study takes a particular situation, fictional or poses questions on the same.
Running and sustaining a business venture is not a piece of cake. And when a venture is as big and well-known as Whole Foods, the task becomes even more daunting. I hope that this case study report would help marketing students understand the brand’s marketing strategy and improve it better.
Author bio: Jane is an educator and marketing professional who has interacted with students and industry professionals alike. She is also the co-founder and consultant at Top My Grades, an educational platform. Jane specializes in delivering business management assignments to students. Beyond work, you can find her on a trekk with friends or fishing.