BSBMKG609 | Marketing Strategy - Woolworth

Running Head: Marketing
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Woolworth
BSBMKG609
12/19/2019

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Contents
Introduction......................................................................................................................................2
Marketing Objectives.......................................................................................................................2
Marketing strategy tactics................................................................................................................3
Business Overview..........................................................................................................................4
SWOT Analysis...............................................................................................................................5
Market Overview.............................................................................................................................6
Customers........................................................................................................................................7
Competitors......................................................................................................................................8
Marketing strategy...........................................................................................................................8
Conclusions......................................................................................................................................9
References......................................................................................................................................10

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Introduction
Marketing strategy is needed in every company as it helps in gaining a competitive
advantage by making an effective plan of cost and prices. The report is made in regard to the
company Woolworth which is the leading supermarket retail store in Australia. There are many
companies which are dealing win the retail market so the competition is higher which will be
stated in this report. The report will also explain the strength and weaknesses of the company
Woolworth and analyses the opportunity to expand the business more. The market plan will be
prepared in this report which helps in promoting the products of the company and devise the
marketing strategies (Fifield, 2012). The company deals in upscale brands so they basically
target the wealthy class people who can afford the higher prices which will be stated in this
report. The major objective of the company is to gain long term customer value by providing
effective services to their customers so the market research will also be done in this report to
analyses the preferences and needs of the customers.
Marketing Objectives
Goals and Objectives: The major goals and objectives of the company are to expand
their business and increase their number of stores in the market. They want to create the optimize
network efficiency and also improve their stock turns. The company wants to expand its stores
more than 800 at every main street across so that they can win the trust of the customers
(Morgan, et al., 2012). The goals of the company are to create greater innovation at lower prices
so that more customers can be attracted.
Mission statement: The Company wants to gain long term customer value by providing
effective services to their customers. The company's mission is to deliver quality services to its
customers and to attain the best value (Knox, 2015). They want to be trusted business partners so
that anybody could rely on Woolworth Company whether it is the manufacturer or the local
farmers.
Vision statement: The Company has the vision statement that they wanted to be the best
leader in the retail brands as they are serving the best services at their stores and also care about
the innovation, quality, and sustainability (Walsh, 2014).

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Marketing strategy tactics
The company has the chain of the supermarket which also provides online shopping
delivery of the products. Marketing strategy is the long term approach that helps in attaining the
goals of the company by achieving sustainable competitive advantage. The strategic actions
which influence the marketing goals are the marketing tactics which will be explained below:
Product: In the Australian market Woolworth is the leading retailer that provides all the
items related to the grocery such as meat, vegetables, fruits, packaged products, etc. The
company not only deals with grocery products but also serves products like DVDs, magazines,
stationery items, etc. (Dos Santos, 2011). The company provides a large variety of products to its
consumers related to the products like they offer local things, branded and even international
cuisine also. The company also offers products like jewelers, bags, beddings, furniture, etc. The
company deals in diversified products like accessories, baby products, household things, drinks,
liquor, pantry, freezer, and bakery materials, etc.
Price: The prices offered by the company are higher than the prices which are prevailing
in the market. The company deals with the superlative brands so the prices kept by the company
are competitive intentionally. The company offers the same products with premium prices and
with the minimum prices depending upon the quality (Greenland, 2015). The company provides
their shopping cards to their customers which gives the benefits to both the company and the
consumer. The company Woolworth gets the benefit that they can track the purchases through
this card and customers get the offers and discount on the cards.
Place: The Company Woolworth has targeted the main market and has opened more than
1000 stores in Australia. The company also has stores like Safeway stores and convenience
stores in Victoria, Melbourne (Nobre and Islva, 2014). The company also provides online
services to its customers so the online platform is another place for the Woolworth Company to
attract the customers. The company has a great retail chain which gives them the benefit that
they have a wide range of networks. Even for consumer convenience, the company has started
the mobile app through which they can purchase the material.
Promotion: The promotion plays an important role in marketing tactics as it helps in
attracting more customers towards them. The company has done the promotion through social

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media apps and with the help of the news and the magazines to attract customers. Even the
company has done the campaigning of the fresh food in which they have given the high
discounts, gifts cards, etc. to reach the massive people (Kumar and Rajan, 2012). With the help
of the promotion the company has earned high revenues and has to attain a good market position
in the retail sector.
People: The Company is earning huge revenues and even they are expanding their stores
so they need more people and employees. The major reason for the success of the company goes
to the sales assistant. The company also gives training to their employees and pay attention to
them (Baran and Galka, 2013). The company has a good relationship with its consumers also as
they communicate with them in an ethical manner and gives them honor and respect. The major
people of the company are the one which operates and manages the functions of the company
which are the Founder and the CEO of the company.
Process: The Company used the process of the consumer-friendly method as their main
motive is to provide customer satisfaction. The process used by the company Woolworth is the
quick billing service that attracts the customers and even the supportive and friendly staff which
treats customers in a better way (Schmidt, et al., 2014). The company also takes feedback from
its customers so that if there is any decline in their process then it can be improved.
Physical Evidence: The financial reports of the company are publically made so that it
could be evidence for the people that they are performing well and spending the money in an
effective manner. There is no chaos at the public stores and even the stores are very clean which
is the major attracting and eye-catching pint for the consumers. Even the online sites and the
apps of the company are also easy to operate that it becomes easy for the consumers to purchase
(Keith, 2012).
Business Overview
Business structure: The Company Woolworth is registered in Australia and it is the
Public company that operates approximately 1000 branded Supermarkets. The company has to
follow the legal and the tax consideration as per the Australian Law. The company follows the
proper hierarchy in the job and functions to each person are clearly defined (Wensley, 2016).

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The company has many employees who are working with them at their stores and have many
shareholders and the owners who have invested their money in the company. The board of
directors of the company is taking care of its operations and the functions of the company and
takes the essential decisions.
Product: The Company Woolworth is the retail store that provides many retail products
at one store only. They provide groceries, electronics, stationeries, etc. It includes products like
fruits, vegetables, meat, packaged food, etc. they also provide beauty products, health products,
baby supplies and essential household products like DVDs, magazines, LED lights, etc. Even the
company sells the clothes and foot wares too so people can buy every essential material of their
life from one store only (Kanagal, 2015). The company Woolworth also provides home delivery
services by ordering the products online.
Financial Analysis: The financial position of the Woolworth Company is good in the
market as they have good revenues of A$ 39.568 billion in the year 2019. AS they are providing
all the necessities at the single store so customers prefer to take the services from one store only
and this is increasing their profit at a constant rate. The profit of the company Woolworth has
enhanced from the previous year 2018 as it was $1795m which has now $2759m in 2019. The
gross profit of the company also enhanced as in the year 2019 it was $17442m. The net profit of
the company has jumped to 56% to $2.7 billion as supermarket sales were higher than the 5.3%.
SWOT Analysis
Strength: The Company Woolworth is the market leader as they hold 80% of the market
share. The company deals in upscale brands so they basically target the wealthy class people who
can afford the higher prices. The company has a good promotion strategy as they started the
promotion campaign to attract customers. Even the company Woolworth has good customer
tracking so even they can ensure how much stock the company has and how much is needed
(Culley, et al., 2017). The company Woolworth provides the proper training to its employees
when they start work so it helps in ensuring employees' satisfaction.
Weakness: The Company targets many income segment people so they have the
weakness of the confused positioning by using the same product. The customizer gets confused

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that whether the company offers the value prices or not. The company gives more attention to the
higher class of income by proving them the better products so partial behavior to certain markets
creates the problem. Another weakness is the price wars between their competitor company like
Coles as the prices of the product is nearest so it ends up with the major losses (Shih, et al.,
2013).
Opportunity: The Company majorly focuses on the experience employees which gives
them the opportunity to expand their business as it helps in differentiating the different products.
They are the leader of the market so they have the opportunity to attract many customers and
expand their revenues (Kanagal, 2015). Another opportunity for the company is that they have
more than 800 stores in the main market so it can avail of many services to consumers and
creates a good value segment.
Threat: The Company Woolworth has the threat of increasing competition in the market
in the retail sectors. The major competitor of the company is Coles which is also giving better
services at a reasonable cost. The online marketing has also created a threat for the company
such as Amazon which is offering every retail product at a single store (Wensley, 2016).
Another threat to the company Woolworth is the increasing awareness of the people towards
health. The consumers majorly buy the products that are free from chemical and organic
products and this creates the change in the supermarket.
Market Overview
Market Research: The Company also does market research before opening the stores in
Australia in a particular place. The company analysis the behavior of the consumers, the
purchasing power and their income segment that whether they could buy the branded products of
the company or not (Khan, 2011). The company also does the research of the customer's
preferences and demands so that they could satisfy their customers with a high-quality product.
The market research is also done regarding the needs, attitudes, values and the behavior of the
people of that particular area. The company Woolworth is dealing with the Oligopoly market so
they have better returns as they are one of the big companies which are dealing in the retail
sector.

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Environmental Analysis: There are many external factors which affect the performance
of the company Woolworth such as technological, legal, demographic, economic factors. The
company Woolworth has analyzed the political factor as it affects the survival of the company. In
Australia, there is the political stability but there were some trade barriers for the company which
has impacted in an adverse manner (Chung, et al., 2012). The rate of GDP growth in Australia is
good so it helps the company is growing faster. The company Woolworth can raise the capital at
fair prices as the financial market in Australia is effective.
The class distribution of the income has a great impact on the company as the wealthy
class people can easily afford the higher prices and the branded products while the lower class
people couldn’t. As per the gender also the environment is targeted as women generally prefer
the cosmetic items while the male generally prefers the electronic items and the gadgets. The
advancement in technology is bringing many new changes in the environment (Aghazadeh,
2015). The cost of the company Woolworth gets affected by the transformation of technology.
The climatic change affects some of the products and makes them useless. Due to the unexpected
monsoon, the delivery of the products also gets impacted. Even the rules and regulation affects
the environment of the Woolworth Company such as health and safety law, discrimination law,
Australian Consumer Law (ASL), etc.
Customers
Target customer: The higher class people who can afford the higher prices are the major
target consumer for the company Woolworth. The customers who have good living standard
measures of group 8 to 10 are generally targeted by the company. The company also targets the
middle and the lower class people but the major focus has been done on the higher class of
income only (Jain, et al., 2012). They target the educational background of people as they are
very much qualified and can afford higher branded products. The company also majorly target
the women’s as there are many products which are offered by the company are useful to
women’s like cosmetics, household things, clothes, footwear, etc.
Customer profile: The customer profile of the Woolworth Company is the people who
have a higher income and are well qualified. The people who give the importance to the branded
things more and raise the concern towards the quality are the major customers which targeted.

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There are many people who are very conscious of their health and want to eat the food which is
less chemical and organic so the company also provides such kind of food and fulfills the
customer’s expectations (Öztamur and Karakadılar, 2014). The customers nowadays prefer
online marketing and do shopping through company websites or through mobile apps as it is
convenient for them.
Competitors
Competitor analysis: There are many competitors which are prevailing in the market
and giving tough competition to the retail company. The major competitor for the company is the
Coles Supermarket as they are serving the products at a single store. The other major competitor
for the company is Costco Wholesale, Amazon, Wal-Mart, Tesco, Kroger, etc. The company
Amazon is providing the online services which are giving the highest competition to the
company as it is declining the market share of the company (Vásquez and Escamilla, 2014).
Competitor Profile: The major competitor profile is Costco, Safeway, Coles, Giant
Eagle, Hollier Dicksons, etc. Although all the companies are dealing with the same products the
key competitive difference is the quality of the products. The company Woolworth provides the
higher quality and also maintains a good relationship with the customers which help in attracting
the major competitors (Leonidou, et al., 2013).\
Marketing strategy
Sales and distribution channel: For the company, Woolworth's sales and distribution
channel are effective as it is an important aspect. From the manufacturer, the products are
directly delivered to the end consumers through the supermarket. The company Woolworth has
to put the major focus on the distribution and the sales channel to increase its revenues and
profits like the competition in the retrial market is increasing. Even the company has maintained
a good connection with its manufacturers and the suppliers so that with the minimum prices they
can target the maximum customers. Through the middleman also the good are sent to the
consumers so the company has an effective sales channel to reach the customers (Cheng, et al.,
2014).

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Marketing budget: The cost indulges in promoting the products is estimated. It is the
marketing plan in which the cost is decided which has to spend to promote the products through
different campaigning (Zeriti, et al., 2014). The company has spent 5% of their total revenues on
the promotion of the product as it helps in growing the market share and increases the profit or
the company. As per the operational cost and sales funeral of the company Woolworth the
budget is created which helps in planning the cost also.
Monitoring the activities: It is important in the marketing strategy to monitor things on
a regular basis that whether the things are going on as per the actual plan or not (Rundh, 2013).
By monitoring things the performance of the company can be evaluated and even more,
customers can be targeted through the effective promotion of the products.
Conclusions
From the above evaluation, it was analyzed that the marketing plan is needed in the
company as it helps in targeting the customers and increasing the profit for the company. When
the proper plan is made and customer segments are cleared then it becomes easy for the company
to target the customers and enhancing their revenues. It is concluded that the company has a
good promotion strategy as they started the promotion campaign to attract customers. Even the
company Woolworth has good customer tracking so even they can ensue how much stock the
company has and how much is needed which also helps in gaining a competitive advantage. In
this report marketing strategies and tactics have explained and from that, it has analyzed that for
increasing the revenues and for attracting more customers advertising plays a major role. In the
company Woolworth, the promotion is done through social media apps and with the help of the
news and the magazines to attract the customers. Even the company has done the campaigning of
the fresh food in which they have given the high discounts, gifts cards, etc. to reach the massive
people. The company has an effective distribution channel which helps in maximizing its sales
and also has a cost-effective budget for promoting things.

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