Woolworth's Retail Store Design and Strategy

Running Head: RETAIL MANAGEMENT
Retail Management
Names
Institutional Affiliations

RETAIL MANAGEMENT
2
Product
Woolworths is the leading Australian retailer. The company provides all sorts of
grocery items as part of its marketing mix (Andrew, 2011). Some of the grocery products
comprise of fruits, vegetables, meat, packed products among others. The company has also
started selling stationary items, DVDs, and magazines. In each category, Woolworth allows
its customers to have large variety of choice relating to local produce, brand, and
international cuisine. This means its management values customer satisfaction as one of the
key factors of maintaining good performance of the business.
To ensure continuous customer loyalty and satisfaction, the management ensures its
products are tested and approved by experts to maintain good quality. The company has
diversified range of products ranging from furniture, bags, housewares, beddings to clothing
and accessories (Stanton, 2012). The diversified range of products has assisted its
management for to cater the all-around needs of the consumers because it enables them to
have all they need under one roof.
Price
Woolworth has been trying to maintain similar or slightly higher prices than its
competitors. Having learnt that, it offers a wide variety of premium brands in food chain as
one of the strategies to keep the prices competitive in the market. The company uses various
pricing strategies to ensure it serves people of different levels of income (George, 2013).
The company also uses other unique tactics to ensure its pricing strategy attracts as many
customers as possible. For example, frequent club is a reward program which provides $20
vouchers for every 200 points gathered. The customers are also provided with Woolworths
shopping cards which automatically track various aspects like purchases, meaning its
customers do not need to retain paper receipts.

RETAIL MANAGEMENT
3
Recently, Woolworth has introduced a new pricing strategy known as round numbers.
Although various people including retail experts have criticized this strategy, Woolworth
believes it certainly makes it easier for its customers to identify prices, and also creates
references prices (Louis, 2011). The strategy was aimed at moving more than 20,000 of its
products to round dollars and no cents. The company believes this pricing strategy provides
customers with simpler price points to assist them in adding the cost of weekly shopping and
in managing weekly budgets easily.
Promotion
Promotion is always of keen prominence for this company (Louis, 2011). Recently,
its management has been using it to attain some of its business goals. The company offers
different loyalty schemes which comprise of petrol pump discounts to its consumers as one
way of keeping long term relationships with them. Woolworth uses various media including
magazines, newsletters and social media for efficient promotion.
Woolworth gives extensive deals and offers including gift cards to its customers as
one way of making its customers realize why they should be associated with the company.
Having realised that most of its customers are in one or more social media platforms, the
company carry extensive promotion through the online media (Dee, 2011). The strategies of
promotion correspond to every mean which this company uses to communicate the values
and benefits of its products.
Although this company has tried to incorporate promotion in its marketing mix, it is
yet to use it effectively to assist it in maintaining as many customers as possible (Ene,
2014). The company should incorporate as many promotional tools as possible in order to
attain its targets. Some of these tools should include advertising with several channels, sales
promotions among others.