BUS104 Introduction to Marketing: Market Plan of Woolworths

Introduction

A marketing plan of a company is a corporate article that is prepared for the determination of unfolding the current market location of a commercial and its marketing approach for the era enclosed by the marketing plan. The main objective or drive of the publicizing plan is to obviously portray the steps of actions that are needed to be taken to accomplish the organisational goals. A marketing plan might also have the strategy to increase the share of the company in the market. A marketing plan thus begins with the acknowledgment of the specific customer needs and how the firm needs to fulfil them while engendering a satisfactory level of return. A marketing plan usually includes the current market situation, opportunities and trends and detailed action programs such as approaches and competitor analysis.

This report will present the marketing plan of an Australia’s retail giant Woolworths. This report will present the industry analysis, competitive analysis, customer’s analysis and brand analysis of the stated company.

Situation Analysis: Company analysis

Woolworths is the largest supermarket chain in Australia and is known for its slogan of Australia’s Fresh Food People. The Company is owned by Woolworths Limited and has been operating in Australia from more than 80 years. Since its opening up in Sydney in 1924, the company has a huge development and become the leader in the household market in Australia (Alexander, Yach and Mensah, 2011). The company delivers a variety of grocery goods from its retail outlets in dissimilar sections. The marketing strategy of Woolworths is to provide greater range of product choices to the customers but at cheap prices. The company sales totalled around $60 billion in fresh food, liquor, entertainment, electronics and other home items. The long-term marketing plan of the company aims to endure to progress multi-option vending and online sales.

Review of Current promotional programs

The promotional strategy currently operated by Woolworths include the new campaign “Always at Woolworths” that has replaced the past “Cheap Cheap Campaign” of the company due to its criticised reviews by the marketers. The stated company is portraying strong message to the customers with Content marketing and with regular updates about the Brand’s various social media channels. The company has huge number of followers on social networking sites (CHOW, 2011). The new campaign of the company, runs in print, television and radio and emphasis everyday value in Woolworths rather than just showing of the discounts. The stated company always calls outs its valued offers to its customers and tells their customers that on hundreds of products across its stores, the customers can expect all at the same low prices.

Brand image

Within the context of marketplace, Woolworths is perceived as the most trusted store in Australia. The stated organisation has a very strong brand image among the people of Australia (CHOW, 2011). People recognise Woolworths as a company which always focus on providing quality products and at low price.      

Environmental Analysis

Political Environment- The governmental authority of Australia has a direct effect on the supermarket industry in terms of legislating trading period and through the controlling and monitoring functions of the Australian competition as well as customer commission (Doyle and Stern, 2006). It also has direct impact over the commonwealth authority, the foreign investment review board and also the trade practices laws. Even the removal of tariff protection has made an easy way for selling products overseas and also makes competition for Woolworths in the domestic market.

Technological Environment- Technology environment describes to the knowledge of doing something technically. Technology continuously modifies the working environment that results in the business becoming much more efficient. Woolworths has implemented a new and trendy technology which is the first largest retailer to subscribe to Global electronic marketing and merchandising network (Doyle and Stern, 2006). The company also contributed for improving the system of distribution and supply chain that has an important effect in cost savings. It also enhanced the online shopping system and benefits. Even it also creates the company website that provides the company a first most mover’s benefit.

Economic Environment- Australia’s economic condition is actually the major encouragement on various businesses. The slow development and uncertainty in the country’s economy currently poses a threat for the retail players because their development may be dormant in future if the condition stays long term (Etzel, Walker and Stanton, 2007). The increasing rate of unemployment, probable enhancement in fuel amount as well as wages is also a subject of major consideration for the participation in the company.

Social- cultural Environment- Changing cultural and social consideration, lifestyle and attitudes has resulted in drastic changes in the supermarket industry in Australia. People are quite concern regarding the health and fitness in today’s world. So, there is a huge requirement and demand for low- fat and low- carb foods, organic foods item and also easy to cook foods (Etzel, Walker and Stanton, 2007). The participation of women in the work force even enhanced currently.

Competitor Analysis

Woolworths is charted as the Australia’s No. 1 food retailer and has diversified retail outlets and operates in around 3200 stores in Australia and New Zealand. The company also operated the BWS and Dan Murphy’s liquor stores. Woolworths has demonstrated consistently its strong financial performance. The company has also re-established its marketing campaign by addition values to the stakeholders and improving up the commercial expansion in order to improve the Australia’s market share by using the refreshing progress to Australia’s retailing Industry. The major competitors of Woolworths are listed below:

Customer Analysis 

Customer Analysis is a very critical constituent of any commercial plan that is required in all phases of growth. When a company realise its customers and recognise who their target market is, and decides how to reach them, then the customer analysis is required. Customer analysis is important as it helps in identifying who the company’s real customers are and thereby improves the segmentation targeting and positioning process. The Woolworths has launched a new online shopping page that gathers the reviews from the customers (Makhitha, 2014). This is to recognise the area in which the company is lacking. Complaints about the products are serviced with ease and functionality. As far as customer satisfaction is concerned, the management of Woolworths always tries to satisfy its customers by providing quality goods and services and at low prices.      

SWOT Analysis

Strength

Strong financial functioning- Most businesses of Woolworth such as Big W, Dick Smith and Safeway Supermarket have represented hugely financial condition in the past few years along with the enhancement in the growth rate of sales. Along with the reducing costs of entire business, the company has reached a 7.96% increment in the revenue for almost five years which is a huge figure compering to the other like Walmart. The company’s capability for generating revenues in the matter that they conduct a plan for extending the market through opening much more shops and also upgrading and providing much more facilities which is a Woolworth’s strength.

Better connection with the providers- Woolworths has focused on establishing long term relationship and association with its dealers (Mani, 2010). In the year 2011, the company has functioned with the Federal Government in a Green paper course for establishing National Food Plan as well as with the help of other contractors for establishing a Charter of Fair Trade which can summarise the principles of suppliers’ commercial connections.

Weaknesses

Increasing debt- The debt rate of Woolworth’s has one up relatively at the end of 2012 as with comparison to its five previous years. During the end of fiscal year 2012, the debt of Woolworths was enhanced $ 513 million to $ 4316. It was mainly due to the fact that Woolworths made many acquisitions during the first some months of 2012. Though the sales growth of the company improves but it is the debt that creates the main risks for the stated corporation.   

Limited geographical share of market- Most of the dealings of Woolworth’s have processes in Australia, so for gaining the competition with the international suppliers it also operates in US, Canada and Mexico (Mu?nch and Mankowski, 2013). The company has to consider its limited shares in the global market as well as extend internationally.

Opportunities

Expansion of online retailing- The future of retailing businesses has been reconstructed through the existence of computerisation, the establishment of the technology as well as development of supply chain, modification of customer lifestyle and also production of innovation. After facilitating online shopping system, the company has a significant increase in the business (Organic foods, 2011). Even through developing application in the iPhone, the consumers can contact to Big W’s online shopping.

Growth in the health food sector- It has been proved by the United Nations Food and Agriculture Organisation that the global population will reach around 9 billion 2050, which clearly outlines that there will be more demand of feeding as thus requires 70% enhancement in the food production. Growing the yield and cropping intensity is needed to be preferred on the existing farmland to obtain the 90% of the foods required. The Fresh Food Future program run by the company delivers a clear opportunity for the long-term sustainability and productivity.   

Threats

There is slow development and insecurity in the Australian economy currently. Slump and growing unemployment in the country, even increase in the alcohol associated diseases and also pressure from authority for reducing the business.

Opportunity Analysis

There are various opportunities for launching the brand in a various markets. It allows the market for having a Grab and Go opportunity (Ravenhill, 2016). It also supported with effective marketing and branding.  Under this analysis, the products are perceived as an aspirational and also trend oriented products. Under this analysis, the products are relevant to the target markets demographic lifestyles.

Target Market

Woolworths is among the largest growing supermarkets in Australia and has great potential in enhancing its market share and market capitalisation in Australia. A target market examination of the corporation has been accompanied:

Socio-economic: As Australia is an established country, the standards of living of people are very high. The administration of the country provides satisfactory support to its people residing in the nation. The financial ailment of the nation is very favourable to the growth of Woolworths. The products sold at the Company are aimed to sell to the higher class of the society (Suppliers, 2014).

Psychographic: As Australia is an established country, the disposable income of the population is high. The target market of the stated company is high income earners. The company purposes at social expansion and emphases on the ecological needs of the citizens of the nation. In Australia, around 80% of the population buys products from the supermarkets which clearly show the potential of enhancement for the Woolworths in Australia.   

Geographic: For this marketing plan, Woolworths is aimed towards providing the facility of stores in every possible corner of the country (Suppliers, 2014). The company has already number of stores in almost all parts of Australia. But one place where Woolworths lacks to operate its supermarkets is the coastal and rural areas. It is important for the company to meet the demand of people from both city and coastal areas.

Demographic: The management mainly targets the women between the ages of 18 to 30 because of their activity in higher disposable income. Another segment is the males between the age group of 18 to 40 who cares about meeting the demand of their loved ones.   

Positioning

Woolworths has completely positioned its market position as a trustful company. The company has restored its positioning as a fresh food people by assimilating a million dollar campaign. The movement seeks to fetch back the fresh food positioning and the campaigns purposes to attend key consumer issues around sourcing, quality and cleanliness. The managing director of Woolworths has stated that the new campaign of the company aims to build the Woolworth’s proud historic and to bring down the Australians outstanding fresh foods and value (Wesselbaum, 2014). The positioning is attained through the communication procedure and with the items that will be located to customers on variety of levels.     

Objectives: Marketing objectives 

• To build a purchaser and store-led values and team
• To produce sustainable sales impetus in food and beverages
• To involve the company drinks in the business to earn more revenue and value and convenience to the customers(Wilkins, 2015).
• To empower the business portfolio in order to pursue the strategies for delivering the shareholder value.

Communication objectives

• To improve the network efficiency while ensuring the customer satisfaction
• To improve the stock turns
• To raise awareness about the importance of going green while shopping

Marketing Mix Strategy

Product- Woolworths concentrates in providing easy accessible products and quality products. It positions wholesome and healthy products. The company has been able to fund the requirements and demand of the customers as well as understood that customers want and desires for having value for money. Moreover, it is also identifying that the consumers have allocate value on the private labelled products of the company (Wilkins, 2015). During the time of recessions, the company has also offered an opportunity for offering high and standard quality products and at the same time effective products to its old and new customers.

Price- Woolworth’s pricing strategy is changed and monitored time to time basis. The supermarket utilises different approaches in order to attract the consumers with the help of promotional offers and also discounts on various products. Discount on price guides and supports in extending the customers base through resulting in higher revenue. The effective pricing strategy helps in attracting the customers (??? and Sungku Kwon, 2012).  The company believes that price is not only the factor for the purpose of attracting the customers but also focusing on the offerings huge discount always. Even the discount in the pricing strategy also helps in extending the customers base through resulting in huge revenues.

Place- Woolworth’s stores are situated in the locations that will be suitable to the consumers. It is also being available for the consumers. Moreover, the supermarket has concentrated in selecting the place where the demand lies. So, it can be identified that the company has concentrated on both the suitability of the consumers as well as the location with huge demand. Moreover, the company has introduced online shops which have become much more convenient for the consumers (Wilkins, 2015). Currently, mobile application has been introduced by the company so that the consumers can buy things anytime from anywhere they want.

Promotion- Woolworth’s promotional activities are guided by the broadcasting media like television and radio. Advertising on billboards is one of the famous medium used by the company in order to communicate and interact with the target markets. Moreover, promotional activities are carried out into the stores.

Conclusion

It has been identified in the study that Woolworths has completely positioned its market position as a trustful company. The company has restored its positioning as a fresh food people by integrating a million dollar campaign. The campaign seeks to bring back the fresh food positioning and the campaigns aims to address key consumer issues around obtaining, quality and freshness. This report outlined the marketing plan of an Australia’s retail giant Woolworths. This report also presented the industry analysis, competitive analysis, customer’s analysis and brand analysis of the stated company.

References

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Makhitha, K. (2014). The Importance of Supermarket Attributes in Supermarket Choice among University Students. Mediterranean Journal of Social Sciences.

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Wesselbaum, D. (2014). Labour Market Dynamics in Australia. Australian Economic Review, 47(2), pp.173-188.

Wilkins, R. (2015). Measuring Income Inequality in Australia. Australian Economic Review, 48(1), pp.93-102.

??? and Sungku Kwon (2012). The Effect of Store Characteristics of a Supermarket on Store Loyalty: A Comparative Study of the Local Supermarket and the Super Supermarket. Journal of Distribution Science, 10(11), pp.61-70.